Venezuela follows China, widely using cryptocurrencies

Recently, Venezuelan President Nicolas Maduro announced that he would use oil and a part of gold for Petro to bring the digital currency to life in a more practical way.


In December, Maduro’s government converted pensions and public sector employees’ wages to Petro instead of cash. The country’s increasing use of cryptocurrencies is believed to help Venezuela solve the domestic economic crisis.

President Maduro announced the launch of the national Petro cryptocurrency in October 2017. Its sales began to take place on February 20, 2018, at a cost equivalent to the price of a barrel of oil, or about $60. This is a new way to help the Caracas government against inflation and currency devaluation.

In November 2019, the People’s Bank of China (PBoC) said that Beijing still intends to support the new cryptocurrency to supplement the paper yuan. Transactions in the digital currency will not be fully anonymous and the value of the electronic yuan will be as stable as the paper currency in circulation.

Chinese President Xi Jinping also stated that China must lead the world in blockchain technology. The billion-nation nation plans to leverage blockchain to revolutionize all of its core industries and see it as the way forward to give China a competitive edge.

China has important legal considerations as well as political incentives. The ability to track the movement of cryptocurrencies will be helpful in dealing with money laundering and many other illegal acts.

Earlier, in July 2019, Iran also joined a group of countries using cryptocurrencies such as Russia – China – Venezuela and moved to legalize the exploitation of bitcoin and other cryptocurrencies. Receiving digital currencies is a legal industry that uses energy to mine cryptocurrencies. Cryptocurrencies could be a way to mitigate the impact of US sanctions, avoiding crippling the economy.

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The head of the Iranian government’s Economic Committee, Elyas Hazrati, told Mehr News: “We believe that the cryptocurrency industry should be recognized as an official industry in Iran, allowing the country to take Taking advantage of tax and customs By making electricity cheap, we can supply the necessary power to cryptocurrency mining machines nationwide.

Earned income will be used to purchase foreign exchange. This will eliminate difficulties if faced with sanctions from the US”.

Iran began taking steps to launch its own cryptocurrency last year, concerned about the possibility that the United States is putting pressure on cryptocurrency exchanges, which have been forced to freeze belonging to Iran citizens in the past.

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