It is anticipated that the cryptocurrency industry, led by Bitcoin and stablecoins, will play a pivotal role in improving the economic position of Venezuelan inhabitants as the country continues to recover from the destruction caused by the Covid-19 hurricane.
Nicolás Maduro, President of the Bolivarian Republic of Venezuela, has given the order to reorganize the Venezuelan National Superintendence of Crypto Assets and Related Activities (SUNACRIP).
Anabel Pereira Fernández has been nominated as the chair of the reorganization board of SUNACRIP by President Maduro via decree number 4,788, which was issued on March 17. Joselit Ramrez has been removed from this role.
Prominently, Maduro has hired Pavel Javier García Sandoval, Ramón Daniel Maniglia Darwich, Carlos Eloy Pirela Méndez, Larry Daniel Davoe Márquez, & Edgardo Alfonzo Toro Carreño as alternate directors of SUNACRIP to substitute three main drivers: Héctor Andrés Obregón Pérez, Luis Alberto Pérez González & Julio César Mora Sánchez.
Although there has been no formal statement regarding the reorganization process, it is believed that Ramrez was removed from his position due to allegations of corruption.
As a result, the economically struggling nation has recruited new leadership to oversee its cryptocurrency program. In addition, because inflation is so high—over 110 percent as of late—the market for digital assets is seen as an essential hedge against the inflationary effects of the fiat currency system.
President Nicolas Maduro stated (1) that
“it is the government’s responsibility to take all initiatives at its discretion to safeguard the Venezuelan folks from the negative impacts of the multi-dimensional aggression that is occurring against the country and, in particular, against its economy.”
Venezuela and the Future of the Crypto Market
The immense oil and mineral reserves in Venezuela have led to the corruption of the country’s political leaders and its law enforcement and legal system.
It is anticipated that the cryptocurrency industry, led by Bitcoin and stablecoins, will play a pivotal role in improving the economic position of Venezuelan inhabitants while the country is still recovering from the devastations caused by Covid-19.
Venezuela has agreed with the government of Colombia to facilitate unrestricted economic activity as part of its strategy to sidestep the sanctions imposed on it by international markets, notably those imposed by the United States.
Despite this, the nation is planning on electing a new government in the following year, which will hopefully contribute to the lifting of the current sanctions.
Over the last several years, around twenty percent of the country’s population has engaged with Bitcoin or Web3 goods. Even more so as a result of the hyperinflation that has forced the majority of Venezuelans to rely on humanitarian assistance.
A recent report states that the United States government has committed more than $171 million in the form of relief aid and development to help the people of Venezuela suffering from the economic crisis.
It’s important to note that over 7 million individuals have left the country in the past few years because of the dismal economic situation.
“This extra investment will help continue providing food, universal healthcare, emergency housing, and the utilization of legal and protection services,” US Ambassador to the United Nations Linda Thomas-Greenfield said at the symposium in Brussels.
Particularly, it is anticipated that those Venezuelans already residing in Columbia and Ecuador will receive a portion of the recent aid that has been donated.