The Maduro regime continues to rely on cryptocurrencies to pursue economic solutions.
The Venezuelan Army’s engineering brigade via Instagram opened the Venezuelan Bolivarian Army’s digital assets production center. As you can see from the video, there are several ASIC mining equipment in the center that are used to crack evidence of work algorithms.
General Lenin Herrera presented a new mine. The stated purpose of the mining operation is to “strengthen and support our units in the Bolivar Army”, and later adds that these mining centers would create “unhindered sources of income” and an alternative to “a system of trust banned and controlled by colonial interests..,” The United States, the country that has imposed sanctions on many members of the Maduro regime.
Due to the collapse in oil prices and the political unrest that hit even before COVID-19, Venezuela has experienced historic inflation in recent months.
As Cointelegraph reported in September, Nicolas Maduro proposed the Anti-Blocking Law, a legal entity that proposes the use of cryptocurrencies to evade sanctions and obtain funding from international allies.
These intentions are not new. Maduro’s administration went so far as to launch and market their cryptocurrency, Petro, which had limited success.
On the other hand, the US military is also closely monitoring cryptocurrency activity in Venezuela. Admiral Craig Stephen Fuller recently mentioned Maduro’s use of cryptocurrency and went so far as to link its use to drug smuggling and terrorism, adding that the military controlled all of these operations.