Topic: Venezuela's central bank is holding Cryptocurrency! - page 3. (Read 703 times)

Well, it is not a bad idea. Think about it this way, if the oil companies can't work with the international companies to get paid in dollars because of banks and sanctions and what not then they could get paid in bitcoins without using any banks which kinda also shows how amazing bitcoin is to go around the loopholes of these kinds of limitations.

When they get paid in bitcoins they could pay the banks their money owed in bitcoin and then those banks could cash that out in other nations for bitcoin (or even their own citizens if anyone wants to buy) but the amount of money they are trying to sell is easily bought in global search. Hence I think not using banks for the oil trade but using bitcoins would both help bitcoin itself and also Venezuela as well.

Because Venezuela is in despair.they have all options to be used in any chances,sad to say about their desperation but they have people to feed and a government to run and if they saw small amount of chance thy will grab this at any cause

Cryptocurrency is fast growing and sooner or later this will be the currency of the world that’s why they were just being prepared(though risky as I know)

The whole issue has actually been severely muddled to the point that we cannot tell anymore which part of it is real news or which part of it is only the product of interpretation or rumor. I guess the Venezuelan government has not issued a clear statement on this. People are taking tiny hints and made everything explode with all their interpretations. There really are no resources released by Venezuela itself to clear all these.

If I may add, if the Venezuelan government thinks that this is going serve as the redeeming factor to their socio-economic and political woes, they are badly mistaken. They need to wake up.

After economic crisis faced by venezuela they have trying to legal cryptocurrency and want to recovery back their economic crisis, many country faced economic crisis because they always depend their condition only with cash money and never for adopting bitcoin as legal digital currency, how ever when have bitcoin they can increase their money.

It is strange that Bloomberg is now resorting to publishing clickbait articles to attract traffic. Venezuela seems to be desperate to inflate its Forex reserves, which as per the latest reports amounts to less than $8 billion. They want to inflate the value of the holdings, so that the national currency (Bolivar) could be exchanged for better rates.

But from where they are going to get Bitcoin or Ethereum for their reserves? A country which can't afford to import toilet paper is now trying to amass cryptocurrency? I think they should stick to their old plan of accumulating gold from the wild cat miners of the Amazon rain forest and exchanging it for foreign currency in the international market.

We don't even know how much are they owning for their country yet. They might own some but the question really is what is the main point on having them in the first place and until know all I see are just confirmations without any kind of actual detail on how much they have, what price they have bought it, and what are they really planning to do with it in the first place. I have posted on another topic related to Venezuela about how can Bitcoin save them from the hyperinflation they are experiencing and I really didn't believe that they are trying to go for it this fast. I still don't think it can save their assess on fixing their economy especially if they don't know how to trade their Bitcoins properly.

Well that part I dont agree, I'm not a fan of either country specifically their governments politics but their central banks have for over ten years been net buyers of gold.   In fact China is the worlds largest buyer of gold, importer and producer of gold and they export no gold bar some basic jewelry perhaps.     That would be a big deal but they have one of the largest nations also and previously had no proper reserves, mostly they hold US debt as an asset.    The reason I mention this is the currency issued relates to the assets which back it hence I would not call these two currencies poor especially.
   Venezuela is being excluded from the US debt and currency market and somehow they are not using gold as much as they might which is surprising to me.   Yuan or Rubles should be suitable but I presume Venezuela does not have a good trade exchange with these countries and so its not as feasible as Dollars which are used and kept globally.
   The strange thing here is that China is a country that greatly imports oil and does not produce much, they are major buyer from the middle east but in theory there is an opportunity to take over some of the production of Venezuela and the refinement required.   It must be that China does not believe there is a long term investment potential for that route where as Russia has built up some usage of the country, they have no need for the oil produced and I guess its just a military asset for them to have a foothold in the region.   Either way the ability for dollar to dominate trade done seems to cause ongoing problems in discouraging trade.

There is nothing wrong if a country's central bank believes the right thing to do at the moment is to hoard bitcoin as much as possible depending on their economic need and their intended target. The effect on the market could be good or bad depending on the side one founds himself and the interpretation one is giving to it.

Assuming that the amount they acquire is huge enough to make impact on the market, then looking at the good side, it means there would be scarcity which would then increase the price of bitcoin in the open market. It also sends a message to the general market that if a whole government could be acquiring, then it shows a further testament that this is the real deal.

On the other hand, if looked at with some level of skepticism, it could mean that what they are trying to do is to disrupt the market by acquiring much now and then dumping thereby collapsing the entire market which would take like forever to recover. Going further on that could even mean that acquiring much means acquiring control that bitcoin philosophy negates from the start.

The system is amazingly tight. You either deal with the major American banks or you deal with the Swift network based in Belgium that is always careful to comply with American regulations because they don't want their network blocked from accessing the US or American banks. America runs the world with it's banking control, not it's gunboats.

I guess people could get round it by using yuan or roubles - but those currencies are unstable and keep weakening, so it's actually safer to use something like bitcoin or ethereum.

I know there are some sanctions but I'm quite surprised they are not able to receive dollars for the oil sold, this is really a serious restriction if no bank is willing to clear a payment to them.   I didnt think the system was so tight as to prevent that, obviously they have the problem of dealing in millions and billions as its a great deal of oil but still amazing if they can find no alternative.
   Also this country has always had some holdings of gold, can they not use that for exchange of value and Venezuela even has some gold mining in the country.   The whole region has at least some gold deposits from volcano activity over the history of the continent.     BTC is easier to transact but its quite a dire situation if they are unable to do business through multiple options of payment.

 My conclusion from all this is they are incompetent and have no little or no planning for the restrictions in place for a very long time.   Ironically it could be a positive if the regime does fall over from their own failings, in every economy its true that failure can represent a positive so long as it allows a better system, company or operation to then begin unopposed by the idiots who screwed it up previously.     Anyone who loves their country should step aside when they fail, these people only love themselves.

I think the title of the thread is misleading, and you have not attached any source of your information.
i have to search it to confirm if the information is correct,.

the title says' is holding cryptocurrency, but all the information I found says. they are still planning or wants.

Venezuela reportedly wants its central bank to hold bitcoin
Venezuela Readies Central Bank Crypto Payments

Venezuela's Central Bank Indicates Plans to Stockpile Bitcoin

The story is more complicated than "Venezuelan central bank holds cryptocurrency".

It turns out that the state owned oil company wants to send bitcoin and ethereum to the central bank because it can't get hold of dollars:

https://www.bloomberg.com/news/articles/2019-09-26/venezuela-has-bitcoin-stash-and-doesn-t-know-what-to-do-with-it

Big stuff like central banks and huge banks holding bitcoin is both a great news and a horrible news for a simple reason. If you private banks and central banks all hold bitcoin that means there is less bitcoin in the market, people could still try to trade bitcoins but there will be less in the market nevertheless, even though miners are printing bitcoins everyday that will be always the case even if the banks didn't hold it so all in all we are left with less bitcoins in the market making it a scarcity so it gets higher in price.

However, bad side is they could sell a ton of bitcoins all at once, them buying thousands all at once and holding profits us but them selling thousands all at once would hurt the market and it sometimes happens as well so all in all its a big risk big reward situation for us small investors.

If they are holding cryptocurrency, it depends on the cryptocurrency they assume to be holding, is it the popular bitcoin or is it the new cryptocurrency they are creating which if it is the new cryptocurrency, it would just be a way of them making more money. I understand that they are creating their own Petro coin, and if this coin being created is being held by them, then they will do everything possible to just push it to the very best end.

Holding cryptocurrency is just going to be like the way satoshi is holding 980 000 of bitcoin now and you can imagine how much that is worth now, so if Venezuela creates a currency and they are holding about 10 millions of it and they push the coin to at least reach 10 to 50 dollars, imagine how much Venezuela would have made form that.

I think this is a clear sign that cryptocurrency is headed in the right direction and its good to see a country which such high inflation investing into crypto as a means for retaining wealth instead of more stable options such as gold or other valuable materials. Additionally, this creates more demand for crypto and helps increase their value which in turns benefits anyone who has invested into it.

Overall, this increases the chance of widespread adoption of cryptocurrencies, in fact, I am sure that many central banks would be holding cryptocurrencies but have not revealed this information. If countries around the world showed that their government/central bank was holding cryptocurrencies, the demand and value of them would skyrocket.

Their plan didn't work because what they were trying to create was far from the concept of "cryptocurrency." In anticipation of the release of ElPetro, there were frequent raids on miners in Venezuela. It is possible that the bitcoins that the Bank now holds belong to the victims of these events.


Yes. ElPetro is a state-created Scam. The most interesting thing is that I could not find any information about this coin. Neither of the rounds of funding. Nothing. All we know about this bench are mostly quotes from president Maduro.

Whether the central bank holds BTC or not is quite irrelevant.

They are obviously not pushing for adoption in the general sense, and if they are holding decentralised cryptos, it's not because they want their citizens to be holding them also - it's to self preserve and hedge against the imminent collapse of the bolivar which is already occurring and to pursue national interests.

I doubt that there will be significant structural reforms of real push for currency reforms with Maduro still in office. And don't talk to be about Petro, it's a scam.

Exploring and accepting changes is the risk they have to take to be able to survive in their economic crisis. This might be the chance for them to overcome the low value of their currency as more improvement happens in cryptocurrencies than their own currency. Their government must also provide tutorial or seminars to let their people know how they will benefit from it.

After the situation with ElPetro, was almost destroyed fiat sovereign Bolivar of Venezuela-it is even logical. The country is suffering from high inflation, which has only been worsened by President Maduro's attempt to create a state cryptocurrency.

Never put a big news here without links that will support your info because hearsay or speculation wasn’t deserved to be here and better transfer to this section
https://bitcointalk.org/index.php?board=57.0

But if that’s legit then this is one good option for other countries to do as well for their economy’s future ,Venezuela on the other hand is very desperate and willing to do,risk and spend everything just to grow their economy again