Venezuela’s central bank is thinking about cryptocurrency reserves

The Central Bank of Venezuela has received numerous pleas from the country’s biggest oil-exporting company, Petroleos de Venezuela SA to create a repository for Bitcoin and Ethereum in order to ensure the transfer of funds from foreign clients to the company’s coffers.

The request was made after receiving foreign currencies became next to impossible due to the United State’s sanctions on Maduro’s government, thus rendering the company almost obsolete. Whether or not the Central Bank will accept this request and actually start converting the national reserves into cryptocurrencies remains to be seen, but at this point, the continuation of relying on Bolivars is simply out of the question.

Venezuela has already trodden the cryptocurrency waters by releasing Petro. But simply due to the mass centralization of the currency neither the population nor the international community agreed to give it any type of value. But still, it was one of the first major confirmation of Fintech being the future of finance all over the world and not only in developing nations.

Despite this, there’s no real reason to believe that the USA will one day decide to relieve Venezuela from the sanctions it has imposed. The only way that could happen is if Venezuela will go through a revolution or a peaceful transition of power to a democratically elected progressive leader. But before then, Venezuela’s only hope of survival in terms of finances is to use either cryptocurrencies or any other major fiat currencies for commerce, but even then, they’d have a very small influence area.