The Venezuelan government is using cryptocurrencies to bypass sanctions imposed on the country by the United States. It is supposed to be about trading in oil and gold. The US imposed restrictions on the country due to its violations of democratic principles.
The Venezuelan government is turning to cryptocurrencies
Let's start with the fact that Nicolas Maduro's government has a serious problem. He is struggling with the effects of the sanctions imposed on Venezuela by the Americans. The latter are not doing this out of inherent malice, but because the Caracas authorities have broken a certain agreement. They promised to carry out democratic reforms that would enable free and fair elections in the country. The US lifted sanctions in response. However, they put them back on. Reason? Of course, the above-mentioned reforms are missing. Maduro cannot afford this, because he will then lose power.
On July 28, voters will choose a new president. Maduro does not enjoy much support. For this reason, he and his colleagues blocked the largest opposition bloc, the United Democratic Platform, from nominating its joint presidential candidate, Maria Corina Machado.
Political opponents of the current Venezuelan government claim that it uses cryptocurrencies to bypass sanctions. Therefore, he is not concerned about US pressure to introduce full democracy. The elections will certainly be held again, but it is already known who will win.
The politics of chaos
However, if you think that the Venezuelan authorities are pro-cryptocurrency, you are wrong. They recently hit the mining sector. It was supposed to be discovered that bribes were being transferred using cryptocurrencies. It was about a certain corruption scandal regarding oil trade.
Chainalytic took a closer look at the cryptocurrency wallet of PDVSA, a state-owned oil company. It turned out that he was using USDT in oil trading. Each transaction was to be half-paid using the stablecoin.
It is worth adding that regimes hostile to the USA often use cryptocurrencies. North Korea does the same. This is the result of the US trying to weaken the economies of these countries through sanctions. Blockchain currencies help circumvent these restrictions.
