Venezuela may soon join El Salvador as one of the few countries adopting Bitcoin as a strategic reserve asset. Maria Corina Machado, the opposition leader contesting the legitimacy of President Nicolas Maduro’s recent election victory, has called for establishing a national Bitcoin reserve.
According to Machado, this initiative could play a critical role in restoring Venezuela’s financial stability, which has been ravaged by hyperinflation and the plundering of the country’s wealth by the current regime.
In a recent interview with Human Rights Foundation CSO Alex Gladstein, Machado highlighted the degenerative processes the Venezuelan economy has experienced. She noted it had faced hyperinflation and a currency devaluation that caused the national fiat currency to lose 14 zeros of its value.
Venezuelans use Bitcoin as a lifeline amid economic crisis
The former deputy of the National Assembly of Venezuela pointed out that her country’s currency has drastically lost value, with inflation soaring and essential prices doubling almost every two days. She appreciates the opportunities that Bitcoin brought its citizens, 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.
The current economic disaster began with government-imposed price controls and a sharp decline in oil prices, leading to the bankruptcy of state-run oil companies. In response, the government printed more money, resulting in skyrocketing prices, rising unemployment, and a collapsing GDP. International sanctions further worsened these issues. Today, many Venezuelans are emigrating in search of work and essential supplies, causing population growth to hit a decade-low.
Machado’s suggestion to create a Bitcoin reserve is based on the idea that digital currencies could aid Venezuela in recovering its economy after the Maduro regime’s rule. She noted that the state sees Bitcoin as a component of their national reserves to restore what was taken by the dictatorship.
The country which is on the northern coast of South America had significant financial resources globally before its gold reserves were depleted. She noted that they plan to regain them with Bitcoin playing a central role.
Machado launches Bitcoin donation campaign to support Venezuelan democratic efforts
Machado, who emphasized that their organization was unbanked, launched a Human Rights Foundation campaign to take donations to support their peaceful efforts on the ground and gain acknowledgment for their win.
Let’s use this technology to bring about the change Venezuela desperately needs.
Machado
If successful, Machado’s plan would make Venezuela one of the few countries in the world to adopt Bitcoin as a national reserve asset. Her vision is to restore the country’s financial independence and use decentralized technology to prevent future authoritarian control over the country’s wealth.
