Central Bank of Venezuela considers allowing Bitcoin payments

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Venezuela has been struggling with hyperinflation for a couple of years now leaving the Venezuelan Bolívar, the state’s official currency, to depreciate rapidly.
Due to the fact that capital controls had been in place since 2003, the people of Venezuela were restricted from obtaining or receiving U.S. dollars or any other foreign currency. But this has not stopped the people from trying to resolve this issue forcing them to reach out to Bitcoin and other cryptocurrencies.
At the same time, not only the large public in Venezuela but also the local authorities have been increasingly watching the crypto space to finally release the Petro digital currency at the beginning of 2018.
Of course, multiple financial analysts pointed out that the local government was looking to fence itself from the US economic sanctions that brought additional difficulties for Venezuela. Still, Petro, the national digital currency is yet to gain mainstream and international traction.
With that in mind, the Republic of Venezuela is still looking to benefit from the crypto space and the attention is now focused on Bitcoin. Therefore, the authorities are planning to add Bitcoin to the balance sheet and with that to offer state institutions the possibility to settle payments in cryptocurrencies.
As the international list of sanctions imposed by the United States against Venezuela isolated the country from the global financial system, local institutions were forced to use other methods to move money around.
Starting from this point, the Petroleos de Venezuela SA – a state-owned oil company – has made a request to the Central Bank to allow companies to accept Bitcoin and Ethereum as payments. If the bank will allow payments in crypto, they will be able to use these reserves to pay off the company’s debts and receive payments without having to go through traditional channels.
Even though Bitcoin is still a volatile digital currency and it still has some work to do until becoming a real store of value as gold, in Venezuela Bitcoin seems to be more stable than the national currency of the country.

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