min to read

2019-09-27 13:43:32




News

Venezuela’s Central Bank may add Bitcoin and Ethereum to its reserves

The Central Bank of Venezuela

min to read

2019-09-27 13:43:32

The Central Bank of Venezuela is studying the feasibility of adding bitcoin and Ethereum cryptocurrencies to its reserves, Bloomberg reports.

The Central Bank of Venezuela is studying the feasibility of adding bitcoin and Ethereum cryptocurrencies to its reserves, Bloomberg reports.

 

The idea was initiated by the state oil and gas company Petroleos de Venezuela SA (PDVSA). According to representatives of PDVSA, the central bank could make settlements with suppliers on behalf of the monopolist company using the available crypto assets.

 

U.S. sanctions have severely limited PDVSA's ability to interact with customers and suppliers. In particular, because of the restrictions, many banks avoid servicing company-related transactions.

 

At the moment, it is not yet known whether any crypto assets are already at the disposal of the Venezuelan central bank. However, the newspaper notes, the international reserves of this oil-rich country are now at $ 7.9 billion, which is the lowest level in the last three decades.

 


 

 

 Experts believe that PDVSA can try to avoid the independent sale of cryptocurrencies on the open market, as it is due to the need to register on the exchanges, identification and compliance with legal standards. Instead, the company proposes that the central bank take over the function of cryptocurrency settlement with suppliers.

 

In August, U.S. President Donald Trump signed an executive order blocking Venezuelan government property in U.S. jurisdiction. The restrictions affected the assets of Venezuela's central bank and oil company PDVSA.

 

Recall that amid hyperinflation, Venezuelans often turn to bitcoin, ignoring the “oil-backed” digital currency El Petro. At the same time, trading volumes at LocalBitcoins in the country several times updated historical highs.

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