- The Venezuelan government’s oil company hopes the bank can pay its suppliers with crypto tokens..
- The Venezuelan government currently holds $7.9 billion worth of crypto
According to a recent Bloomberg report, the Venezuelan government is considering whether or not it can hold cryptocurrencies in its national reserves. The report cited “four people with direct knowledge of the matter.” The state-operated gas company Petroleos de Venezuela SA (PDVSA) is looking to send BTC and ETH tokens to the country’s central bank.
The company is expecting that it will use crypto tokens to pay its suppliers. Moreover, several proposals were filed to allow cryptocurrencies to be counted in the country’s international reserves. The Venezuelan government currently holds $7.9 billion worth of crypto.
PDVSA is unsure about selling its cryptocurrency on the open market because “it would require the company to register with an exchange and subject itself to due diligence…it wants the central bank, which officials at the oil company believe is less exposed to potential blocks.”
Venezuelan citizens and the Venezuelan government have inclined towards cryptocurrencies. Venezuela has isolated itself from the world economy after the US announced sanctions against President Nicolas Maduro’s authoritarian regime. This has worsened the country’s economic crisis.
The country managed to create its cryptocurrency, dubbed Petro, that was backed by oil and other commodities. Petro was viewed as a covert attempt to access international debt markets which performed poorly in the crypto market.