The Downfall of the Venezuelan State-run Cryptoasset
Maduro and his cabinet spearheaded a set of policies that saw the Latin American nation launch its own oil-backed cryptoasset, which it named the Petro (PTR).
The government also created Sunacrip, a state-run agency that oversaw crypto policy, as well as a state crypto-powered remittance platform named Patria.
Additionally, Caracas promoted crypto mining, and even commissioned engineering units of the Venezuelan army to mine BTC tokens for the state coffers.
Venezuela's Maduro says he will change half of his cabinet https://t.co/sh809LJDkF pic. .com/St8GBng7ly
— Reuters (@Reuters) August 27, 2024
Maduro: Venezuela Crypto Adoption Ended by Plot
Underpinning all this was a policy that revolved around crypto-powered trade. With Caracas frozen out of trade with Western-aligned nations due to US-led sanctions regimes, Maduro reportedly amassed a huge “stash” of Bitcoin (BTC) and Ethereum (ETH) coins.
Maduro pulled the plug on Sunacrip, the Petro, crypto mining projects, and more when he clamped down on a $21 billion crypto “plot.”
The “plot” revolved around Petróleos de Venezuela (PDVSA), the state-owned oil and natural gas company.
Maduro claimed Sunacrip officials, senior government ministers, and others siphoned off billions of dollars worth of crypto used in international oil sales.
The President said that “thieves” had dented blockchain technology’s progress in the country, but vowed to revisit the crypto “path.”
“A group of bandits and thieves destroyed the path of crypto in Venezuela.”
Nicolás Maduro
Contested recent elections have seen Maduro once again at loggerheads with Washington, Brussels, and others.
The United States Department of State has recently accused Maduro of “tampering with election results,” while EU leaders have also rejected Maduro’s claims of victory.
As such, sanctions regimes against Venezuela are likely to remain in place or intensify while Maduro remains in power.
President Nicolás Maduro appointed Delcy Rodríguez as Venezuela’s new oil minister, while she continues to act as vice president. https://t.co/6D4xZYkGHz
— Bloomberg (@business) August 27, 2024
Caracas, Moscow, Tehran All Turning to Crypto?
Perhaps anticipating this, Maduro has urged his government to renew their crypto policies.
The announcement comes at a time when Maduro’s allies in Moscow and Tehran are also exploring the use of crypto as a payment tool in international trade.
Russian President Vladimir Putin has recently green-lighted the use of crypto in cross-border trade.
And experts say that Iranian firms began using crypto as a payment tool in the trade sector several years ago.