Digital Assets: Venezuela May Soon Use Cryptos To Evade Trade Sanctions

October 1, 2020 | Digital Assets, News

Venezuelan President Nicolás Maduro (pictured above) plans to use cryptos to conduct the country’s international trade.

In a televised speech, Venezuelan President Nicolas Maduro proposed a new bill to stimulate the use of petro, the country’s homegrown digital token, and other global cryptos in domestic and international trade. (AMB CRYPTO)

Maduro went so far as to say that Venezuela should use “all of the world’s [cryptoassets], both public and private.”

“Anti-blockade law”

Maduro accused international sanctions of wiping out nearly all of Venezuela’s foreign currency revenue over the last six years, causing losses of about US$ 65 billion.

Maduro claimed the new anti-sanctions law, presented on September 29, would strengthen the use of petro and other cryptocurrencies.

“The anti-sanctions law is the first response to give new strength to the use of petro and other cryptocurrencies, national and global, in domestic and foreign trade, so that all cryptocurrencies of the world, state and private, could be used,” Maduro said. “This is an important project that is under development.”

He said the new bill would be a foil against U.S. sanctions and enable the Venezuelan government to restore the country’s economy. The government could, therefore “protect Venezuelan assets at home and abroad from theft.”

As of now, the new bill is under the review of the National Constituent Assembly of the country’s legislative body.

Petro a failure

Venezuelans have been increasingly taking to cryptocurrencies as a means to run their lives. Freelancers and other service providers elect to receive their payments from overseas customers in cryptocurrencies. They can exchange these at various sites for bolivars to fund their daily needs.

More than three million Venezuelans have left the country and live and work abroad. They send back money to their families using cryptocurrencies.

Venezuela’s crypto, the petro, has been a dismal failure. Most people use the petro app to trade and exchange other cryptos such as bitcoin.

Nevertheless, in August, Venezuela implemented its new National Tax Harmonization Agreement. It will allow the nation to raise taxes and sanctions using the petro.

Related Story:  Cryptobuyer-Mega Soft Tie-up to Allow Venezuelans the Use of Cryptos

Image Credit: Nicolas Maduro by Wikimedia Commons

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