Fri 06 Sep 2024 ▪ 4 min read ▪ by Luc Jose A.
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The Venezuelan opposition is exploring radical solutions to turn things around in the face of the country's economic collapse. In fact, it proposes using Bitcoin as a national reserve asset. The stabilization of this economy devastated by years of mismanagement requires the recognition of Bitcoin as a national reserve asset.
Bitcoin as a national reserve asset: a bold proposal
During an interview with Alex GLADSTEIN, the strategy director of the Human Rights Foundation, Maria Corina MACHADO, a leading figure in the Venezuelan opposition, revealed her plan to use Bitcoin (BTC) as a national reserve asset. She claims that it is time for Venezuela to turn to modern solutions to rebuild its economy, and Bitcoin is the key. MACHADO justifies this decision by the failure of the bolivar, the national currency, which has lost 14 zeros between two successive presidential terms. This devaluation, fueled by an out-of-control inflationary policy, has raised inflation to 1,700,000% according to her estimates.
She also recalled that, despite the country's significant oil resources, the disastrous economic policies of Presidents Hugo CHÁVEZ and Nicolás MADURO have led to a complete collapse of financial stability. Today, according to her, millions of Venezuelans are seeking to protect their assets through Bitcoin, which is effectively becoming a "humanitarian tool" in the midst of the crisis.
Bitcoin as a strategic lever for economic sovereignty
MACHADO sees Bitcoin adoption as a way to build a “new Venezuelan democracy.” She explains that cryptocurrency, as an incorruptible asset, can protect citizens’ property rights and ensure that external donations or investments are not seized by the regime in power. For her, Bitcoin can help rebuild trust in the Venezuelan economy and restore wealth to the poorest.
She is not the only one who sees Bitcoin as a strategic tool at the national level. Former US President Donald TRUMP has also mentioned the idea of establishing a national reserve in Bitcoin to counter the colossal US debt. If Machado's project comes to fruition, it could serve as a model for other nations in crisis, eager to emancipate themselves from international financial pressures.
Venezuela’s adoption of Bitcoin as a national reserve asset is a bold and risky proposition. If successful, it could radically transform the country’s economic trajectory and offer an innovative model to other struggling nations. However, the scale of the challenges to be faced is enormous: from regulating the cryptocurrency market to the inherent volatility of Bitcoin, not to mention potential opposition from the current regime.
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