Could Blockchain and Bitcoin Help Venezuela Overcome the Economic Blockade?
Venezuela tries to get around its economic situation, aggravated by falling oil prices amid the international onslaught of risk rating agencies, US pressure, limited access to sources of financing and other underground blocking strategies financial. All this is information can be corroborated in practice, markets do not have the basic products for Venezuelan diet, spare parts for vehicles are scarce, medicines can not be bought because there is not, that means there is a palpable reality lacking even the smallest to make a normal life.
While this scenario unfolds, things can now get worse with announcements coming from the United States, Trump threatens Venezuela with ‘strong’ economic measures. US President Donald Trump threatened strong economic sanctions against Venezuela if Nicolás Maduro’s government implements the Constituent Assembly. In relation to this decision making and the Constituent Assembly is holding its sessions and legislating, therefore the threats can carry out.
So the response was as follows, the United States will undertake brisk and swift economic action, “Trump said in a statement released Monday by the White House. The American president also said that his Venezuelan counterpart is a bad leader “who dreams of becoming a dictator.”
On the other hand, according to media reports, the United States considers extending these sanctions to Venezuela’s energy sector, including state oil company PDVSA, an extreme case that the White House has not confirmed. In this sense, it should not be forgotten that Venezuela is a single-country and exporter of crude oil, there is very little value added to this energy matter, which makes the economy of this ruble very dependent, if the threats are carried out the population can continue to increase in their hardships.
Now, from the perspective of being able to get out of the crisis and help alleviate the scarce food products, medicines, spare parts, machinery, among others, necessary to carry out the plans and projects of the country’s development, the question may be asked. Can Blockchain technology and Bitcoin help break the siege or economic blockade?
Before addressing this question, as necessary information it is important to point out that the economic blockade had already existed for 2 years, the news in the media reported it so, what was not believed and, it was said that the government was inventing it, to justify the shortage of products on the supermarket shelves, now with the announcements of the President of the United States, blocking with sanctions and not letting dollars reach Venezuela’s economy, the authenticity of the United States is involved in the economic problems of Venezuela.
If one recounts some international news, such as sanctions against Russia and Iran, one can perceive that in the case of Russia, the government may be changing the way of seeing blockchain and Bitcoin, it is already mentioned that the large-scale miners are partnering or looking for lower prices in electric power, to carry out Bitcoin mining activity. In Russia, in the press references the electricity corporations will sell at low prices the electricity for the activity, on the other hand, Russia already have in production microprocessors that consume less energy and can make these agreements and transfer this technology to Venezuela, so that also you can do bitcoin mining, then get the foreign exchange that Venezuela so badly needs.
From this perspective it is possible to perceive that when a government tends to evaluate the blockchain and bitcoin technology, as an ally, it is possible that with the economic funds they can allocate significant amounts, towards the mining activity to be able to obtain resources in convertible currencies. Therefore, technology can help in minimizing the economic blockade, as long as the government understands that it is possible with bitcoin mining and blockchain education to implement its benefits in other areas of governance.
In short blockchain technology and bitcoin can help Venezuela, it only takes the government’s willingness to understand that there are great possibilities in the new disruptive technologies. New announcements are expected.
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