Venezuela has been in turmoil the last few months since Juan Guaido – a member of the social-democratic Popular Will Party launched a bid to disposed Hugo Chavez’s successor Nicolas Maduro. The oil and resources rich country and its citizens have faced heavy pressure from Western countries gunning for regime change.
Countries such as United States, European Union and the majority of Latin American countries have boycotted Maduro and enacted Cuban-style embargoes that have reduced its already trouble Bolivar currency to nothing. “Venezuela’s inflation rate is expected to reach 8,000,000% in 2019, making it the world’s most miserable economy.” According to Wikipedia.
As a result, Nicolas Maduro and his United Socialist Party of Venezuela government is forced to seek help elsewhere to boost the economy in order to the country and its citizens afloat. China and Russia have been great help, but have been very careful going all the way not to anger the president Trump the anti-Maduro United States Congress.
With limited resources, reach and friends, Maduro has fully embraced cryptocurrency as a way to weather the onslaught. Today (Aug. 27, 2019), the Venezuela government announced a state-run cryptocurrency platform its citizens can use to receive digital payments as remittance instead of US dollars and traditional currencies.
Users of the state-run cryptocurrency platform will be able to receive Bitcoin (BTC) and Litecoin (LTC) as payments, but with one caveat. Users are required, by law, to exchange the crypto coins for local Bolívars or Petros Crypto currencies. The platform or exchange, called Patria Teresa, will be regulated by the country’s crypto regulation body ‘Superintendency of Cryptoassets and Related Activities (Sunacrip).’ Those wish to use Venezuela’s state-run cryptocurrency platform must pass ‘know your customer (KYC)’ and ‘anti-money laundering (AML)’ requirements.
What do you think? Is Venezuela’s state-run cryptocurrency platform the beginning? Will other government with economies under western hostage follow suit?