While the national currency is the Venezuelan Bolivar is experiencing hyperinflation, that country’s President, Nicolas Maduro announced the creation of a new cryptocurrency that is supposed to save the financial situation in the country.
According to Reuters, Maduro made the announcement during the Christmas televised address, saying that the cryptocurrency, which is not yet released, will be provided by oil. Maduro, who took office in 2013, said that the cryptocurrency will help the country to overcome the financial “blockade”.
Venezuela will create a … cryptocurrency to maintain monetary sovereignty because it will help to overcome financial blockade and, thus, to move to new forms of international financing of economic and social development of the country.
Opposition leaders in Venezuela have criticized this idea. Reuters quoted the legislator Angela Alvarado, who said that the idea of “not credible”:
Maduro is a clown…
According to Business Insider, the national currency of Venezuela continues to fall against the U.S. dollar. More recently, the government issued a new banknote of 100,000 bolivars. The rapid inflation of the Bolivar led to a sharp increase in consumer prices, which exacerbated the crisis.
Many Venezuelans have long been engaged in the mining of cryptocurrencies, to literally though as-that to survive, to a large extent contribute to low electricity prices.