In the last few years, many countries in the world have been showing a more positive and open attitude towards cryptocurrency and these have been applied in various provinces for social responsibility purposes and it is rumored that China is developing their own digital currency in response to the Libra token. However, one of the most prominent examples of a country making use of cryptocurrency is Venezuela who launched their national Petro currency in 2018 and this was in a bid to combat their economic problems and hyperinflation as their fiat currency had lost a lot of its value.
It seems the country’s interest in cryptocurrency is still going strong as it was reported on September 24, 2019, that the central bank of Venezuela is looking into the holding of other cryptocurrencies such as bitcoin and ether and this is from anonymous sources that are allegedly close to the situation.
While Venezuela has dabbled in cryptocurrency before, their latest interest in crypto is fueled by a desire to protect their interest rather than necessarily innovation as Petroleos de Venezuela SA (PSDV), which is an oil and gas firm that is run by the state reported to the central bank and they should look into storing cryptocurrencies after a contractor had trouble receiving payments from an outside client due to sanctions that have them placed against Venezuela.
According to the sources close to the situation, PSDV wants to have the central bank store bitcoin on either and pay the contractors in cryptocurrencies to get around the sanctions. Because digital currency is practically borderless in it’s application, there has been a rise in countries trying to get around sanctions while making use of digital currency and this includes North Korea, who have been accused of sponsoring a hacking team who steal cryptocurrencies from exchanges to fund their nuclear weapons program.
In view of this development, the Venezuelan central bank is reportedly looking into proposals that will involve storing of cryptocurrencies and counting them towards their national reserve which is sitting at $7.9 billion as of now.