The hyperinflation stricken and heavily sanctioned Latin American country, Venezuela, has been trading in bitcoin with its allies Turkey and Iran according to local media citing sources at the Central Bank of Venezuela.
“The Anti-Blockage Law strengthens the legal floor for these transactions by stating that the National Executive may authorize ‘the creation and implementation of any financial mechanism ‘including’ the use of crypto assets and instruments based on blockchain technology,'” the paper founded by Venezuelan investigative journalist Nelson Bocaranda says.
Venezuela now will “use all the cryptocurrencies in the world, public, state or private, for internal and external trade,” said Nicolás Maduro, the contested president of Venezuela who further added the country already has “important projects in development.”
They have launched a new exchange by the National Cryptoactive Superintendency called the Venezuela Exchange where you can buy bitcoin with hyperinflating bolivars.
In addition they have inaugurated an Army Digital Asset Production Center, suggesting the country is seemingly going full in on bitcoin.
That’s after Iran passed a law to use bitcoin for imports, a world first, with America using cryptos as well to bypass Venezuelan sanctions.
They sent aid to the country through USDc, a stablecoin operated by Coinbase & Circle, so bypassing the internal Venezuelan financial system.
It is thought Venezuela has been mining primarily bitcoin but also other cryptos since at least 2018, with the cryptocurrency very popular in the country.
Now they have made it explicit that bitcoin and other cryptos are being used for international trade at the state level, with a legal framework passed to do it legitimately as far as their legal system is concerned, making this the dawn of a new global bitcoin financial system.