Il Venezuela is one of the countries that have been forced to undergo a very severe economic embargo by the United States. Which, contrary to what the Washington government affirmed, according to which they would be directed only against the Maduro regime and the personalities connected to it, are instead full of devastating consequences for the entire civilian population. As it has been recognized by the United Nations Organization, just recently.
To try to mitigate the effects, the president of the Bolivarian republic has long since embarked on the path of a digital currency, the Petro. Guaranteed by the country's large resources of oil and other raw materials. Which soon Caracas could decide to add a real one CBDC (Central Bank Digital Currency).
Nicholas Maduro's latest move
Over the past few months, the Venezuelan government has been trying to give one greater stability to the economy. To do this, it did not hesitate to lift currency exchange controls and raise the official price of the US dollar within national borders. In order to match that established in the black market. It's still, it allowed its citizens to open dollar bank accounts, although transactions continue to be processed in Bolivar.
On Thursday, however, Nicholas Maduro announced the arrival of upcoming surprises. Which, according to observers, would take the form of a digital bolivar.
The digital bolivar as a tool for dollarization of the economy
Fernando Medina, CTO of vlockcahin.tech, said in an interview that the digital bolivar could become what the Petro has not been so far: a cryptocurrency managed by the central bank.
Second Ray Falconi, active member of the National Cryptocurrency Association of VenezuelaHowever, the government's plan is aimed in particular at dollarizing the economy. The recent decision to open accounts in the US currency, in particular, would allow citizens to acquire cash and digital currency and then convert them into a token backed by those dollars.
While according to the president of the National Cryptocurrency Association itself, Jose Angel Alvarez, the coexistence between Petro and digital bolivar would allow the authorities to use the former for internal transactions and the latter for international ones.
Meanwhile, Venezuela is increasingly crypto-friendly
Maduro's plans are constantly being adjusted. Precisely for this reason, observers comment on his statements with a certain prudence. In the meantime, however, Venezuela sees one continuous advance of digital money to the detriment of the bolivar.
The national currency, in fact, is burdened by very high levels of inflation, which push low-income workers and retirees to exchange it in Bitcoin or other popular tokens. Even though digital money is very volatile, the risk involved in handling it is actually less than that associated with keeping it.
A trend that makes Venezuela the South American country where the cryptocurrency they are more used in everyday life. A record held together with theArgentina, another country beset by the fragility of the state fiat currency, the weight. Precisely for this reason, over the last few months Nicholas Maduro has even gone so far as to predict the end of traditional money in favor of virtual money. An extremely ambitious plan, moreover made necessary by an embargo that is having increasingly heavy effects on the civilian population.