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October 4, 2022
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Venezuela is said to be circumventing sanctions with BTC –

Venezuelan President Nicolás Maduro says his country “will use all cryptocurrencies in the world “, to bypass the sanctions imposed by the US. Increased cooperation with Turkey and Iran in this field may be at stake.

Maduro is betting on Bitcoin

According to reports from RunRun.es, Venezuela intends to increase the use of Bitcoin in the field of paying for imports. The goal is to circumvent the financial sanctions imposed on the country by the United States.

RunRun.es, a site set up by Venezuelan investigative journalist Nelson Bocaranda, cited its anonymous sources from the Venezuelan central bank saying that “Payments to companies in allied countries such as Iran and Turkey were made using Bitcoin.”

It is just not clear what Venezuelan imports are all about. The most likely thing is that Turkey and Iran are currently providing their ally with food and fuel in exchange for gold and possibly cryptocurrencies as well.

The Petro project did not work out

It is worth recalling that the government of Venezuelan President Nicolás Maduro previously promoted its state-issued e-currency “Petro”, the value of which was allegedly backed by crude oil. Petro was intended to be a medium of exchange both internationally and nationally since its issuance in 2018. However, problems quickly arose. Apparently, the issue was not covered in oil, which forced the regime to investigate the use of other cryptocurrencies in this field, including Bitcoin and Ether.

Maduro began publicly threatening to use Bitcoin and other cryptocurrency assets as a means to circumvent sanctions as early as September, announcing that his administration would soon “Will use all the cryptocurrencies in the world, public, state or private, for internal and external trade.”

On October 8, the Venezuelan National Assembly passed the U.S. Economic Blockade Act, granting itself further executive powers to circumvent sanctions imposed on the country, including the creation or use of any cryptocurrency asset as a monetary instrument.

The Venezuelan government also established its “Digital Asset Production Center”, a Bitcoin mine, in November.

Last week, the Venezuelan government also launched its cryptocurrency exchange, backed by the National Cryptoactive Superintendency, to allow citizens to exchange Bolivars for Bitcoin.

Iran also enacted the law to use Bitcoin to pay for imports in an attempt to ease the pressure on the country’s already fragile economy.

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