The President of Venezuela – Nicolas Maduro – has been on a mission to sustain the country’s economic solvency, and it seems like his path may continue to depend on cryptocurrencies.
An engineering brigade of the Venezuelan army has introduced the new “Digital Assets Production Center of the Bolivarian Army of Venezuela” in an Instagram post. In the video, the center seems to have numerous ASIC mining kits utilized for cracking proof-of-work algorithms.
The new mining operation will be presented by General Lenin Herrera. The goal of this mining procedure is “strengthening and self-sustainability of our units of the Bolivarian Army,” later adding further that these mining centers will be producing “unblockable sources of income” and a substitute to the “trust system blocked and controlled by colonialist interests,” alluding to the SA – a nation that has several leveled punitive actions against numerous associates of the Maduro regime.
Oil Prices & Political Disruptions Have Significantly Affected The Venezuela Economy
Venezuela has encountered significant inflation in the past few months with the tremendous drop in oil prices and political disruption even before COVID-19.
In September, Maduro suggested an “Anti-Blocks Law“, that promoted utilizing cryptos to avoid sanctions and receive funds from international allies. The objectives are not new. The Maduro government has even launched and promoted Petro, their own cryptocurrency\, though it wasn’t very successful.
On the other side, the U.S army as well is keeping an eye on Venezuela’s crypto operations. Lately, Admiral Craig Stephen Faller called Maduro’s usage of cryptocurrencies and even related its usage to terrorism and drug trafficking, adding further that the military is closely observing all such activities.