A lot of countries have been moving to cryptos ditching their sovereign fiat currencies for safety against the looming economic crises. The country that has been at the forefront of this adoption is Venezuela as its economy is currently in tartars with inflation skyrocketing and Peso being worthless.
Legislation to provide businesses confidence to carry out transactions in cryptos
Asamblea Nacional Constituyente or the Constituent National Assembly of Venezuela passed on a new legislation that gave a framework to local businesses to use cryptocurrencies for carrying out the daily transactions as well as for investment. The Assembly also progressed in legal projects with a motive to strengthen and promote national and international cryptocurrency Petro.
According to the report published in the local mouthpiece Prensa Latina, The legislator of the plenipotentiary body for the business sector and member of the Commission of Diversified and Productive Economy, Gerson Hernandez, put forward that the progress in legislation is focused on strengthening the Program for Recovery, Growth and Economic Prosperity promoted by the Executive.
The Legislator also mentioned that the new amendment to the Anti Money Laundering Law was announced to promote investment in Venezuela and revive the economy. This amendment also authorized that the house of exchange can carry out foreign exchange operations legally with the inclusion of the digital currency.
The report also stated Hernandez telling the press that
“the basic objective of the legislation is to give greater support and confidence to the business sectors to invest and carry out their transactions through cryptocurrency, in order to avoid international controls that seek to bloc Venezuela’s economic and financial development”
Venezuela is experiencing the worst economic crisis in its history, with an inflation rate of over 400 percent and a volatile exchange rate. Heavily in debt and with inflation soaring the citizens of Venezuela have relied on cryptocurrencies as a safe haven against the falling Argentinan peso.
This legal framework will definitely boost the use of cryptocurrency in the country and hope this helps Venezuela improve its economic condition and strengthen its economy.
Will Cryptos help Venezuela improve its economic condition? DO let us know your views on the same.
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Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.