Venezuelan Vice Minister Tells Investors to Pay in Crypto to Dodge Sanctions

Adoption Cryptocurrency Venezuela

Author

Tim Alper

Tim Alper

Author Categories

About Author

Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked...

Author Profile

Share

Copied

Last updated:

June 26, 2023 06:54 EDT

Why Trust Cryptonews

Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

A Venezuelan minister has been singing the praises of crypto – and suggesting that the government, which amassed a large bitcoin (BTC) and ethereum (ETH) “stash,” plans to attract international and domestic investors by convincing them to use cryptoassets.

According to Globovision, the comments were made by the nation’s Vice Minister for Special Economic Zones Juan Arias, who “defended the use of cryptocurrencies” to “protect” investors in the country from “direct sanctions from the international community” for those “supporting projects promoted by the Venezuelan state.”

The Venezuelan government, led by President Nicolás Maduro, is at loggerheads with Washington, which has attempted to recognize opposition parties as the true leaders of the country, claiming irregularities in the 2019 general election.

Strict economic sanctions have been placed on any firm doing business with state-run Venezuelan companies, and the international banking system has been shut down to the state. Maduro and his ministers have attempted to counter this by launching a state-run cryptoasset named the petro (PTR). Washington responded by threatening sanctions on international firms that seek to do business using the petro.

But Maduro has hinted that some parties are willing to trade with Venezuela – if they can use crypto as a means of sidestepping the financial system.

In a bid to boost the economy, the Maduro-led government has designated eight Special Economic Zones, promising investors who set up shop in the zones the opportunity to access raw materials from mines and oil fields near the zones.

And Arias claimed that attracting national and international investors to take part in the projects could be facilitated by the government promoting “financial transactions made in cryptocurrency.” This, he suggested, would ensure that investors “do not suffer the consequences” of the Washington-led “economic blockade.”

He was quoted as stating:

“A financial transaction made with crypto is made outside the international banking network. It is made through the internet, so it is not possible to block it. It’s that simple.”

____
Learn more: 
– Crypto Exchanges & Bitcoin Price Trackers Among Venezuela’s Most-Visited Websites
– Rio’s Treasury Reserves to Be Made up of 1% Crypto, City May Enable BTC Tax Payments

– Bolivian Central Bank ‘Bans’ Crypto, Says Tokens ‘Have No Place in Domestic Market’
– Bitcoin & Crypto Mining Gets Another Latin American Hydroelectric Power Boost

– Uruguay’s First Bitcoin & BNB ATM an Instant Hit with ‘1,000 Transactions in First Hours’
– Peru, Uruguay Edge Closer to Crypto Regulation with Draft Law, Policy Advisory Report