Nicolas Maduro's Bold Move: Venezuela's Possible Return to Cryptocurrency

Venezuelan President Nicolas Maduro has recently hinted at a potential shift back towards a crypto-friendly stance for the country, following a tumultuous period marked by the PDVSA-Crypto scheme that saw $20 billion in cryptocurrency lost to unaccounted oil sales.

A New Direction for Cryptocurrency in Venezuela

During a recent meeting with banking sector representatives, Maduro emphasized the need for Venezuela to ‘retake the crypto path’. This statement suggests a reconsideration of the role of cryptocurrency amidst a global trend towards a multi-currency model that includes various fiat currencies such as the dollar, yuan, ruble, and rupee.

Maduro 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."

Interestingly, he did not mention petro, the national cryptocurrency that has faced challenges and is reported to be on the verge of liquidation since January.

The Aftermath of the PDVSA-Crypto Scheme

The reference to ‘bandits and thieves’ pertains to the PDVSA-Crypto scheme, wherein officials from the state-owned oil company, PDVSA, engaged in questionable practices involving cryptocurrency payments amounting to $20 billion that were not reported to the national treasury. This scandal led to the arrests of key figures, including the former head of Sunacrip and the former president of PDVSA.

Additionally, the Sunacrip agency has been undergoing a restructuring phase, and Bitcoin miners faced significant challenges, with over 17,000 mining machines seized by authorities to address power consumption issues amid ongoing blackouts in the country.

What are your thoughts on Maduro's recent nod towards cryptocurrency? Let us know in the comments below!