Venezuela wants to sell oil for cryptocurrencies

The Venezuelan oil and gas company Petroleos de Venezuela SA (PSDV), wholly dependent on the state, wants to bypass international sanctions that impede its sale oil. How? Settling transactions in cryptocurrencies.

The case was revealed by the agency Bloomberg. The state-owned oil company wants Venezuela's central bank to allow it to store cryptocurrencies on its accounts. These are the two most popular cryptocurrencies: Bitcoin i Ethereum. All this in order to bypass the American sanctions that were imposed after the actions of the President of Venezuela Nicolas Maduro, which American politicians simply call the introduction of the regime.

Petroleos de Venezuela SA could trade oil practically without obstacles if the transactions were carried out in cryptocurrencies. As you can guess, it is about huge rates, so the company needs a central bank as a trusted broker and guarantor of liquidity.

Blommberg sources say the bank's authorities are already analyzing the technical options for handling such transactions. Cryptocurrencies could even be included in Venezuela's international reserves. They are currently kept in dollars and reach 7,9 billion USD. This is the smallest level in Venezuela in the 21st century.

Bitomat in Venezuela

A country from South America is quickly getting used to cryptocurrencies. In September, the first bitomat, i.e. a machine in which the local peso currency can be exchanged for Bitcoin, Bitcoin Cash and Dash. Settlements in cryptocurrencies are becoming more and more popular in Venezuela, because inflation is raging in the country. It is so large that it counts in ... million percent! Whoever can, therefore, exchanges the Venezuelan pesos for cryptocurrencies or the leading fiat currencies, although this is more and more difficult.

Venezuela has its own digital currency. Petro was created to help overcome the financial crisis. The guilty have already been identified. According to the Venezuelan authorities, the sanctions are caused by US sanctions, according to the American authorities it is the result of the mindless policy of the Venezuelan authorities. The new digital currency did not make a sensation, however, because the Venezuelans did not trust it and did not start using it en masse. Instead, the vast majority of them chose Bitcoin.

This is just another proof that cryptocurrencies - considered risky assets - can be, despite appearances, a safe haven at a time when the economic turmoil is hitting any country. It was the same during the crisis that hit Greece six years ago.