Venezuela’s dreams of portraying itself and becoming a crypto nation could soon see daylight. If sources are to be believed the Venezualan government could have undisclosed Bitcoin and Ethereum mining farms in the country, despite the deficiencies in the country’s energy grid. Furthermore, Venezuela has some of the cheapest electricity in the world.
Exploring the Possibility of Cross Border Payments with Bitcoin and Ethereum
Per a Bloomberg report, the country’s national oil company Petroleos de Venezuela is earnestly exploring ways to send Bitcoin(BTC) and Ethereum(ETH ) to the central bank so that the state-owned firm can pay its due monetary obligations to international suppliers.
While the idea of cross border payments does sound fancy, facilitating international trades with the top cryptos would not be so easy. The conversion of the tokens would need to undergo strict compliance with KYC policies set by any exchange. More importantly, it will be subjected to laws of the United States or countries influenced by U.S. policies.
If in case the government has dedicated mining centers, it will be required to disclose that information to the National Assembly (or the National Constituent Assembly). In any case, the public would not have an official answer until January 2020.
Is Venezuala A Tough Competition for All Crypto Nations?
Interestingly, the whole scenario got the industry leaders talking. Anthony Pompliano, Co-founder of Morgan Creek Digital said that Venezuala will eventually admit creating state-sponsored Bitcoin mining facilities. Furthermore, it will be a source of non-censorable revenue for them.
Binance CEO Changpeng Zhao, lauded Venezuala and said that a few countries are way ahead in their game. He further said that active buying will push the price further and the impact of Bitcoin will be global.
Pompliano seemed to agree with CZ and said that there are many people who ignore the mechanics and game theory of Bitcoin.
An economist with handle “RB” rebutted Pompliano’s claims and said that the Venezuelan government is just using the free electricity to mine cryptos and avoid US sanctions.
A user with handle “Cryptosazerac” agreed with the debacle which ensued and considers it to be great. He further said that the hash wars will lead to Bitcoin becoming the safest asset for the upcoming century.
What will be the Venezuelan government’s next move? Let us know, what you think!
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Coming from a physics background the unpredictability and intrigue of the cryptoverse attracted me to take a dive in this field. I am all eyes and ears for the latest trends in blockchain and crypto sphere. Whenever I am not writing or researching, I love to read sci-fi novels, play basketball and watch action movies. I strongly believe that blockchain and cryptocurrency will bring lasting transformations in people’s lives in the years to come. You can reach out to me at supriya [at] coingape.com.