News Worms
News Worms

Maduro to Create Venezuelan Cryptocurrency 'To Overcome the Financial Blockade'

Maduro to Create Venezuelan Cryptocurrency 'To Overcome the Financial Blockade'

Maduro, who took office in 2013 and has presided over the aggravation of the socio-economic crisis, said that the cryptocurrency would help the country overcome the financial "blockade", according to a statement published on the government's official website.

Without offering specifics as to how or when the currency would launch, Maduro added it would help Venezuela "advance in issues of monetary sovereignty, to make financial transactions and overcome the financial blockade". Bitcoin, the world's largest digital currency, hit new highs last week, and Maduro declared that his plan will counteract the economic disaster that is befalling the Venezuelan bolivar, which has experienced hyperinflation as the country's economy has collapsed.

Venezuela will create a new cryptocurrency backed by oil reserves and other natural resources, President Nicolas Maduro said. It is an attempt to cope with a failing national economy and circumvent USA sanctions.

Maduro blames his country's economic woes on a conspiracy to overthrow him combined with US economic sanctions, but he intends for a new petrocurrency to overcome those sanctions.

The announcement came as a surprise to some of the followers of cryptocurrencies, as conventional cryptocurrencies are not backed by governments or central banks.

Maduro's government has a poor track record in monetary policy.

Over the past year, the Venezuelan bolivar has plummeted 95.5 percent against the dollar on the black market. That has dragged down the monthly minimum wage to a mere $4.30 (3.2 pounds).

The announcement was derided by the opposition leaders.

For the millions of Venezuelans plunged into poverty and struggling to eat three meals a day, Maduro's announcement is unlikely to bring any immediate relief.

According to opposition leaders and economists, Maduro, who was previously a union leader and bus driver, has carelessly refused to alter Venezuela's restrictions and curtail the severe economic meltdown.

He could now be seeking to pay bondholders and foreign creditors in the currency amid a plan to restructure the country's major debt burden, opposition leaders said, but the plan is likely to flop.


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