Topic: [2019-09-27] Hyperinflation Forces Venezuelan Central Bank to Explore Bitcoin - page 2. (Read 382 times)

ok, was only trying to help actually!

Mr Carlton, the elite poster. If he considers someone not worth talking to, then oh well, no one should. Right? The way you refer to bbc.reporter is ridiculous to say the least.

I am genuinely interested in his side of the story. If you aren't interested, which is all fine, then just don't get anything started.

it was bait to get you into a dialogue. very few people actually talk to the user you're replying to, because, well... I'll let you figure it out

you're being baited because the user needs people to talk to it, because, well...

I don't see why that's so funny?

They might own Eth for the purpose of moving USDT and some other stablecoins back and forth, which you need to pay for gas. Another aspect is that they might tokenize their fiat currency and have it run on Ethereum. If you also take into consideration that Ethereum will very likely switch to POS eventually, that will make them a powerhouse if they hold a lot of coins.

Don't forget that not everyone is a Bitcoin purist. It might be hard for Bitcoin bulls to believe, but there are a bunch with great interest in altcoins too.

not even North Korea? It's under harsher sanctions than anyone else, and for longer

No country would trade in BTC with Maduro for Venezuelan Oil I repeat No country. Let me explain why, The top export countries for Venezuela have been USA, China, India and a bunch of European Countries and all of these countries are kind of the solid Economy Structures of the world and all of them have been strictly against cryptocurrencies. So no way that these are going to trade in BTC. Now not only these countries are major exporters they are also pretty much involved in the politics of this country too. Now if they think Venezuela is trading BTC for Oil with a few countries they will take it pretty seriously.

I think buying bitcoin is just a step to assure other countries that Venezuela has enough funds to pay off their suppliers and pay for services of extraction because looking at their current situation no country would have even trusted them with an order of crude oil.

all of that is wrong


the Venezuelan currency has been getting massacred on the foreign exchange markets for many years, and arguably for no good reason seeing as Venezuela is huge in the oil business. Chavez and Maduro certainly did print money to keep powerful Venezuelans on their side, all governments do that. But I am pretty skeptical that powerful Venezuelans are even accepting bolivars as payment these days, and even if they did, Maduro cannot risk pissing them off at all right now.

So even if 100 trillion bolivar notes are being printed, it's not the cause of the hyperinflation, it is an after-effect.

I don't know how Bitcoin is going to help them. Maduro is very well aware of what is causing hyperinflation in his country. If he slows down the printing of banknotes, then the inflation rate will come down. But he is not willing to do that, because he needs to pay the military and the government officials who remain loyal to him. Now what difference Bitcoin is going to make here?

Although cryptos can help individuals in Venezuela in their daily transactions and protect them for hyperinflation, they can't help the country as a whole. BTC isn't a cure for socialism ! They need some serious political change first.   

It would be interesting of a study in case Venezuela would eventually adopt Bitcoin as part of its national reserve of currencies and how it can impact the country's economic woes and challenges. Well, for a country that is desperate exploring as many options as possible is imperative. Will Bitcoin be a catalyst for good change sin the economy of Venezuela or will it just be a status quo? Now, if there will be positive domino effects in the use of Bitcoin then certainly this can not be hidden to other countries that can have economic and political upheavals as well. But at the same time this can cement the notion that Bitcoin can be a good way to avoid sanctions.

It's like the perfect solution for them. Due to their government's actions and corruption, all the people at the top are super rich, and then the normal people are bankrupt, and defaulting on all their loans and mortgages. Such a horrible situation...

I don't think they can see BTC as a long term option though, more of just a bandaid fix until the economy gets fixed up a little bit - BTC will be extremely volatile and to have that as your main currency, means that you will have huge, huge swings that aren't healthy for anyone.

I'd like to see how they deal with this though. How is BTC going to be used here?

I very much highly doubt that any government will openly embrace a technology whose foundation is based on decentralisation.

Let alone the Venezuelan government which has had a track record of economic mismanagement, as well as being a direct competitor to bitcoin essentially with their Petro project (which has gone to crap). What incentive is there for them to "help" the Venezuelan people? Close to none, really.

I believe that the most likely outcome is that they will continue to be essentially pushing Petro adoption, more than anything (or perhaps a revaluation of their currency?) which is no different from their current fiat.

Cryptocurrency has proven to be a good option against hyperinflation, especially in Venezuela case, due to US government and international trade sanctions.
Venezuela gov have some way to stockpiling cryptocurrencies via the collection of taxes in cryptocurrency, sell Petro in exchange for bitcoin and litecoin, people can buy airline tickets and amenities using cryptocurrencies and the Petro such as for Passport, licenses, fines, plates, and titles.
They simply use bitcoin, ethereum, BNB, and litecoin to circumventing financial blockades to selling energy resources.
on the one hand, it is a good use of cryptocurrency, on the other hand, it is quite sad for them to struggle through all these schemes because of the Maduro's regime.

I read a similar article. However, when I read it, this article made me a little, quiet laugh that I could not control.

I hope that it is true hehehe. Let them hold it.



The Central Bank of Venezuela is exploring whether to hold Bitcoin and Ethereum in its international reserves. The cryptocurrencies would be used to circumvent international sanctions and pay state-run oil company debts, the report revealed.

Source https://cryptoslate.com/venezuela-could-hold-btc-and-eth-in-its-international-reserves/

that's unlikely to happen, not least because it's actually really difficult for Maduro to rip Venzuelans off too badly right now due to all the external pressure Venezuela is exposed to



well, those things all sound positive to me.

• Regular Venezuelans are protecting their wealth independently using BTC
• Venezuelan gov realizing they can take a tip from their peasantry citizenry and using BTC to stop themself getting bullied on the world stage
• Zimbabwean people using fiat money not controlled by Zimbabwe gov
• Zimbabwean people using cryptographic money not controlled by Zimbabwe gov
• Zimbabwe gov weakened by the above
• Venezuelan gov weakened by the above

I hope the state collapses in both countries (it nearly already has, yet as if by magic, life literally goes on).

So long as people are smart enough to find a way to keep the army and the police in place (i.e. pay honest, smart people to do the job a smart way), then the trading environment in either state could be incredible, they could become world renowned for entrepreneurial innovation. I think Venezuela in particular would need that army though, although I suspect the people running the Venezuelan oil business are already pretty close to the army anyway.

The Venezuelan government should rather concentrate on changing their political goals and start serving their citizens and not enriching themselves at the cost of their citizens.    Their own people are shifting away from their local reserve currency, because it is working against them and they are moving their wealth into Crypto currencies like Bitcoin to protect it's value.

Simply using Crypto currencies to bypass economic sanctions are not going to solve their problems. Zimbabwe started using different currencies from other nations and they are still struggling, because their government is corrupt. 

Maduro's Venezuela can only solve it's problems using BTC as a trading currency in a limited fashion, at least in the short-term

Most of the countries they can still trade with (which is already a short list) don't want to encourage a BTC based world, as that undermines their power as controllers of their own regional currency.

Because Maduro is in a desperate position, he can only trade with similarly desperate nations. To my mind, there are only 2 such nations: Iran and North Korea.


Iran possibly doesn't need Venezuelan oil, or maybe not much. Venezuela has sweet light crude to sell, and it's possible Iran doesn't need much (not 100% on this point, but certainly heavy crude requires some light crude as part of the refining process, exactly what Iran needs I am not sure of)

North Korea, however, are in an equally crappy position, perhaps worse. And the rumors are that North Korea uses alot of gangster-ish unofficial back channels to continue to trade (through China, South Korea and Japan). But it's a big ask: get Venezuelan crude all the way across the Pacific, to or near to North Korea without getting intercepted by Team America: World Police.

If, however, Maduro could pull something like this off, it's possible that the long-term might look after itself.


Which other countries are so embattled on the world stage that they'd actually trade in BTC with Maduro for high quality Venezuelan oil? Any ideas?

They are getting desperate and when the banking system start looking towards other opinions, you know things are bad in these countries.
The government are rich yet the people are poor thus defaulting on their loans to them. So they have to go to plan b which in this case is the big B called BTC!

Way to go on becoming the go to currency on gettting Venezuela out of the economical crisis they are in!

When it comes to cryptocurrencies, no stone should be left unturned. That applies to both individuals and entire nations alike. Venezuela, a country known for its rather hostile approach to Bitcoin, might be on the brink of openly embracing the world’s leading cryptocurrency. The national central bank is conducting surveys to see if Bitcoin can become part of its foreign reserves.

Venezuela’s Situation is Dire

Most people are all too aware of the problematic financial situation hampering Venezuela for several years now. The country no longer just suffers from regular inflation, but has to contend with hyperinflation every so often. It puts a lot of strain on the economy, and there has not been a viable solution in sight. Contrary to what everyone had expected, Bitcoin might effectively become the saving grace of this country after all.

After attempting to remedy the dire situation for some time, the Venezuelan central bank has seemingly thrown in the towel. More specifically, they are conducting tests to see if cryptocurrencies become part of the nation’s foreign reserves Accessing foreign funds – primarily US Dollars – has been very difficult due to current regulation and sanctions. New solutions need to be found, and the only global form of money on the market today may offer the solution the country so direly needs.

Read More: https://nulltx.com/hyperinflation-forces-venezuelan-central-bank-to-explore-bitcoin-as-a-foreign-reserve/