The President of Venezuela has been rather busy as of late, or, at least his officials in charge of the cryptocurrency department of the South American country have been active in their implementations of their emerging program.
He has gone on record and has made an announcement notifying the world that their cryptocurrency department has been able to attract a substantial amount of miners. He’s stated that they’ve been able to register over eight hundred and fifty thousand young individuals to mine their national cryptocurrency, the Petro.
The country is in a state of disarray and has experienced vast economic turmoil, leaving many of their citizens destitute and searching for various ways to gain ways to survive and thrive.
Thus, the substantial interest may be because many young people are looking for an opportunity in a country that seems to be majorly lacking in it. The new sector has given young and old a chance to be able to afford and a better life through mining Bitcoin and possibly other cryptocurrencies.
The aspect of hyperinflation has led their currency, the bolivar to have lack of worth. This has led to people wanting to gain access to food and other resources with no traditional means of exchange to obtain their basic needs.
The country is seeking a revitalization, new life in its economy. Their problems started a while back and has only gotten worse as the years passed on.
The problems may have started with the prior leader Hugo Chavez but continued to decline rapidly when Maduro came into power
Many turned to the emerging cryptocurrency Bitcoin to be able to mine and generate some valuable income to keep them afloat in their turbulent times.
The government, from an official manner, stayed neutral on the utilization of electricity to mine Bitcoin, yet there were situations where local officials cracked down on miners, soliciting bribes to let the miners conduct their mining practices. Also, the aspect of mining may have been seen as something that is antithetical to the policies of the country.
Thus, the government of the country has progressed to embracing and deploying their national cryptocurrency, the Petro, and many have signed up to officially mine the cryptocurrency.
The Government Issues a Registry
Venezuela has confirmed and has issued a registry for individuals to mine in a legal manner, as it is being done in Russia, China and others. The mining seems to be able to conducted for Bitcoin and the Petro.
There are various frames of mind on the registry. Some believe that the registry can act as a way for the government to know who and how many people are involved in the mining of cryptocurrency, thus allowing them to centralize it in some manner. Others have stated the registry might officially legalize the act of mining, thus bringing in more legitimacy to mining.
Details on the mining
It seems as if the government has set up farms for mining and will streamlining the process in the months to come. They have not released many details as to the economics and the various other aspects of how the Petro cryptocurrency is to work.
The U.S releases further sanctions
It seems that the U.S, in response to these developments, or rather, in general, have released more sanctions on the country of Venezuela.
According to the Miami Herald:
“The Trump administration on Friday slapped sanctions on four current and former high-ranking military officials in Venezuela, saying the men were helping promote “corruption and repression” in the troubled South American country.”
The publication further noted on the statements of the US Treasury Department.
“President [Nicolás] Maduro and his inner circle continue to put their own interests above those of the Venezuelan people. This action underscores the United States’ resolve to hold Maduro and others engaged in corruption in Venezuela accountable.”
Venezuela hopes to circumvent the effects of sanctions and take back control of their finances.