Venezuela central bank looking into holding BTC and ETH

27 Sep 2019

Venezuela bitcoin The central bank of Venezuela is contemplating holding Bitcoin (BTC) and Ether (ETH) in its coffers.

This is according to anonymous sources who allegedly have direct insight into the matter.

In reference to a Bloomberg article this week, Venezuela’s central bank is looking further into the possibility of storing cryptocurrencies.

State-run oil and gas company, Petroleos de Venezuela SA (PSDV) has asked the central bank to consider the matter as the firm encountered difficulties collecting payments from international clients as a result of U.S. sanctions against the current regime of Venezuelan President Nicolas Maduro.

The sources stated the PSDV is seeking to transfer Bitcoin and Ether to Venezuela’s central bank who will then pay its suppliers in cryptocurrencies, says a Coin Telegraph report.

With the aim of getting over its isolation from the global financial system, the central bank of Venezuela is looking into proposals that would result in digital currencies counting towards the country’s international reserves, which are currently at a 30-year low of $7.9 billion. 

Earlier this month, Coin Telegraph reported that after a number of failed attempts, Venezuela’s first cryptocurrency ATM was installed in San Antonio del Táchira. Latin American company Panda BTM installed the machine which supports digital currencies including Bitcoin, Bitcoin Cash and Dash, as well as the official currency of Venezuela and Colombian pesos.

There have been other attempts at installing a Bitcoin ATM in Venezuela. Crypto company, Cryptobuyer announced the upcoming installation and testing of a Bitcoin ATM back in January this year in Caracas. However, the installation never advanced.

Colombia currently houses the most cryptocurrency ATMs of any other country in Latin America. This number is set to increase due to a partnership between international peer-to-peer Bitcoin marketplace, Paxful, and blockchain company, CoinLogig, based in Medellín, who are set to install 20 new cryptocurrency ATMs in the country.