Maduro uses cryptocurrencies for his business with Iran and Turkey

cryptocurrencies, Mature
The sending of money by the 5 million Venezuelans abroad to their families serves as an excuse for Maduro for his transactions. (PanAm Post)

Bitcoin, Litecoin, Dash and other cryptocurrencies are the new and popular forms of payment of the questionable businesses of the Nicolás Maduro regime with its allies in Iran and Turkey, which make Venezuela the country with the most hash rates in Latin America , which means that a substantial amount of computing power is generated.

This is part of Chavismo’s anti-sanctions bill to promote cryptocurrencies in the market and thus gain entry to the cryptographic ecosystem to violate United States sanctions on its officials and assets abroad, as he explains. Cointelegraph.

“There are reports that the Maduro Administration uses bitcoin to facilitate trade between Iran and Turkey, two of the main geopolitical allies,” the portal specializing in digital economy disclosed.

To these operations are added those of the military through the Center for the Production of Digital Assets of the Bolivarian Army of Venezuela, an instance that houses ASIC mining equipment designed for work tests with cryptocurrencies in order to generate “unblockable” economic income.

A blacklisted head

The attempt to evade the restrictions imposed by Washington has Joselit Ramírez Camacho, the superintendent of the Petro cryptocurrency of the Chavista regime, on the list of the most wanted.

For the Department of Homeland Security Investigations of the US Immigration and Customs Enforcement Agency, this official has “deep political, social and economic ties” with alleged drug trafficking leaders, for which she issued a reward of up to 5 millions of dollars for any information leading to his capture.

The accusations stem from an inquiry made by a court in the Southern District of New York related to “transnational organized crime.”

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The coronavirus drives

The pandemic pushed these platforms because “companies and individuals are looking for payment alternatives that do not require the interaction or physical presence of people”, analyzes Jorge Farias, CEO of Cryptobuyer.

With the conditions in favor, Cryptobuyer and the payment processor Mega Soft partnered last year to allow 20,000 merchants to use their services to receive cryptocurrency payments through the Cryptobuyer Pay solution.

The connection of a bitcoin node to Blockstream’s satellite network in Venezuela is also reported. The joint work between Cryptobuyer and cryptographic education provider AnibalCripto launched the node and thus took the first step towards building a mesh network capable of processing Bitcoin transactions without the need for an internet connection.

The result of this digital swarm has allowed that only in the first week of December 2020, the exchange peer-to-peer LocalBitcoins has been 5850 million bolivars exchanged on the platform. For the first week of February, this figure climbed to 8,560 million bolivars.

Required registration

Operations are on the radar of socialism. The regime ordered the creation of a mandatory registry and the establishment of new taxes for those who work in sectors related to mining. With a new law, it introduced the controversial “National Digital Mining Pool”.

Under this new requirement, it will be mandatory for miners to contribute their hashing power to a new state-backed mining pool.

Although there is still no clarity on the scope of the measure and how Venezuelan miners will participate, the regime is making inroads with public institutions.

One of them, the Administrative Service for Identification, Migration and Immigration (Saime) enabled in June the payment in bitcoins for the renewal of the passport through the official website, but only for applications made from abroad.

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“Dear user, you selected payment with cryptocurrencies. Please keep in mind that you will only have 8 minutes to complete the transaction, so we recommend that you have your payment method at hand and facilitate the process without inconvenience, thanks for your understanding ”, the site threw when selecting the Bitcoins option .

Two days later they disabled this process that reveals Chavismo’s interest in these financial tools, he says. As it is.

Juan Guaidó, interim president, also holds the stable currency USD Coin ( USDC ) to move its resources confirming the attention to cryptocurrencies in the country to gain access to a more stable safe haven asset.

Adoption in the region

Latin America “is a focus for the entire cryptocurrency industry due to the failure of monetary policies and corruption,” he says. Beincrypto.

Useful Tulips data indicates that Venezuela, with more than 500 million dollars mobilized in platforms such as LocalBitcoins and Paxful in the last two years, make the nation the one with the highest volume of operations in the region. Colombia, with 300 million dollars in the same period, is in second place, while Peru, with 91 million, and Argentina, with 43 million, are located third and fourth, respectively.

The sending of money by the 5 million Venezuelans abroad to their families affects the boom and serves as an excuse for Maduro for his transactions.

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