Venezuela reportedly pays companies in allied countries, including Iran and Turkey, with bitcoin to mitigate the effects of US sanctions on its economy. The Venezuelan government is also planning to increase bitcoin usage now that it has a dedicated cryptocurrency mining center.
Venezuela uses Bitcoin to pay for imports
Venezuela is using bitcoin to pay for imports from allied countries, local news outlet Runrun.es reported this week.
President Nicolas Maduro’s government also plans to increase the use of bitcoin in commerce as the Venezuelan military is actively mining the cryptocurrency at the recently inaugurated crypto mining center, the publication added, quoting sources from the Central Bank of Venezuela:
Payments to companies from related countries, such as Iran or Turkey, are made with bitcoins.
Maduro explained that the country’s anti-blockade law allows him to “use all cryptocurrencies in the world, public, state or private, for internal and external trade,” and announced that some major projects are already under development.
This law was passed by the pro-government National Constituent Assembly in October. It provides a wide variety of tools to mitigate the impact of US sanctions on the Venezuelan economy.
Among other provisions, the anti-blocking law gives the executive branch (Maduro and his ministers) the power to “approve the creation and implementation of any financial mechanism, including the use of crypto assets and instruments based on blockchain technology”. transferred.
Venezuela isn’t the only country trying to use bitcoin to evade sanctions. Iran is also in the process of establishing a legal framework to allow the central bank to do that buy bitcoin directly from miners operating in the country to pay for import.
What do you think about Venezuela using bitcoin to circumvent US sanctions? Let us know in the comments below.
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