Latam Insights: Venezuelan Opposition Leader Proposes Bitcoin Reserve; Maduro Wants to Retake the Crypto Path

Welcome to Latam Insights, a compendium of Latin America’s most relevant crypto and economic news from the past week. In this issue, Venezuelan opposition leader María Corina Machado proposes creating a bitcoin reserve, Venezuelan President Nicolás Maduro states that the country must retake the crypto path, and a GAFILAT report indicates that bitcoin has not had a “significant impact” in El Salvador.

Venezuelan Opposition Leader Proposes Establishing a Bitcoin Reserve

Maria Corina Machado, leader of the Venezuelan coalition currently contesting the results of the recent elections, in which President Nicolas Maduro was proclaimed victor, has proposed establishing a reserve using bitcoin.

In a recent interview with Human Rights Foundation CSO Alex Gladstein, Machado highlighted the degenerative processes the Venezuelan economy has experienced, facing hyperinflation and a currency devaluation that made the national fiat currency lose 14 zeros of its value.

In this context, Machado appreciates the opportunities that bitcoin brought Venezuelans, stating that due to its specific traits, it served as a lifeline for some who used it to protect their wealth and to finance their exits from the country.

Machado stated:

We envision bitcoin as part of our national reserves helping rebuild what the dictatorship stole. Before our gold reservers were plundered, Venezuela had wealthy financial reserves worldwide we will restore those reserves and include bitcoin as a key component.

Venezuelan President Nicolas Maduro Proposes Retaking the ‘Crypto Path’

Venezuela might retake a crypto-friendly stance in the future. Recent statements given by President Nicolas Maduro at a meeting with banking sector representatives hint at a reconsideration of the role of cryptocurrency in the country, after taking several measures that affected exchanges and mining initiatives in the past.

Maduro touched on the cryptocurrency issue while talking about how the world is migrating to a multi-currency model, including a basket of currencies based on the dollar, the yuan, the ruble, the rupee, and other fiat currencies. He stated:

Let’s talk about the world of cryptocurrencies. We started that path and we have to get back on it because a group of bandits and thieves destroyed the path of cryptocurrencies, but we are going to get back on it.

However, Maduro did not reference the petro, the national cryptocurrency reported to be on the brink of liquidation in January.

Financial Action Task Force of Latin America States Bitcoin Has Not Reached a ‘Significant Impact’ in El Salvador

The Financial Task Force of Latin America (GAFILAT), Latam’s largest organization that fights money laundering and terrorism financing, has revealed in its latest report evaluating El Salvador’s compliance that bitcoin has been only marginally adopted in the country’s economy.

The report, which examines the state of compliance of the country with 40 recommendations of the group, determined that even when El Salvador included bitcoin as legal tender in 2021, the adoption has not had a “significant impact” on the country’s economy nor high transactional volumes. GAFILAT found that during the evaluated period only $6.6 million had entered the financial system in the form of operations related to bitcoin, in exchange operations from BTC to U.S. dollars.

This volume represents less than 0.1% of all the assets administered by banks in El Salvador.

What do you think about this week’s Latam Insights report? Tell us in the comment section below. #Write2Earn