Venezuelan President Nicolas Maduro has said that the country can provide cryptocurrency-based loans to the agriculture sector, in addition to traditional loans in multiple fiat currencies. He also said that Venezuela has worked with Petro and other cryptocurrencies for three years, allowing such assets to be used in LATAM.
Government Hints at Offering Cryptocurrency Loans in Venezuela
mature indicated On the possibility of lending in cryptocurrencies to the agriculture industry in an announcement made at a cabinet meeting last Thursday. He said the country would look for new ways to finance domestic agriculture and added that these loans would have lower interest rates to benefit farmers. Elaborating on his ministers, Maduro said:
I personally ask you to lead the public banking sector and extend credit and financing to private banks under the lightest terms for all food producers in the country.
The proposal also introduces the idea of giving these loans in multiple fiat currencies such as the euro and even the Chinese yuan. While Maduro mentioned Venezuela’s own cryptocurrency, the Petro, he also said that they will work with all cryptocurrencies, as the government has been doing for three years.
an escape from bolivar
The change in Maduro’s cryptocurrency indicates a reduction in the strength of Venezuela’s own fiat currency, the bolivar, which is rapidly losing ground against the dollar, which has become the de facto currency in the country. More recently, on June 20, according to the popular dollar price index, Bolivar lost over 10%, and is now close to 20%.
This is the reason why the government is considering a revaluation of its currency by deducting six zeros from the current figure. This would facilitate the task of calculating taxes and making large payments, which as a result of today’s exchange rates are very difficult to work with.
This is not the first time that the Venezuelan government has turned to cryptocurrencies to improve its economic situation. Venezuela was one of the first countries in Latam to develop a large bitcoin mining community even before the activity was regulated. Furthermore, Venezuela was a leader in cryptocurrency adoption, with the launch of the Petro, one of the first state-sponsored cryptocurrencies. Maduro emphasized this idea in an interview to Bloomberg on June 22, when El Salvador made bitcoin legal tender.
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