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Technology Venezuela reportedly wants its central bank to hold bitcoin

06:40  30 september  2019
06:40  30 september  2019 Source:   engadget.com

Bitcoin Draws Premium in Argentina and Hong Kong Amid Sell-Off

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Venezuela may not just be using its own cryptocurrency to dodge the consequences of international sanctions. Bloomberg tipsters say the country's central bank The firm reportedly has troves of bitcoin and ethereum, and moving that money to the central bank might let it pay suppliers and

Venezuela ’s central bank is running internal tests to determine whether it can hold cryptocurrencies in its coffers, according to four people with direct knowledge The efforts come at the behest of state-run Petroleos de Venezuela SA, which is seeking to send Bitcoin and Ethereum to the central bank and

Venezuela may not just be using its own cryptocurrency to dodge the consequences of international sanctions. Bloombergtipsters say the country's central bank is testing the possibility of holding on to cryptocurrencies in order to help the state-controlled oil company Petroleos de Venezuela SA. The firm reportedly has troves of bitcoin and ethereum, and moving that money to the central bank might let it pay suppliers and avoid "potential blocks" from conventional channels that would come with either direct crypto payments or regular money.

Nicolas Maduro wearing a suit and tie

The bank is likewise considering proposals to count cryptocurrencies toward international reserves that have plummeted in recent years.

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Venezuela ’s central bank is exploring the possibilities of holding Bitcoin and Ether in its coffers, at the request of state-owned oil In the hope of overcoming its isolation from the global financial system, the Venezuelan central bank is reportedly studying proposals that would see cryptocurrencies

The central bank of Venezuela is reportedly running test to find out whether it can add bitcoin and ether to its international reserves. How the PDVSA has obtained bitcoin and ether, the report reads, is unclear. As the country has been under U.S. sanctions it has been struggling to do business with

It's not certain where Petroleos got the bitcoin and ethereum, let alone how much it has. There's also no guarantee that companies would accept such a move when crypto's relative anonymity and the potential for money laundering leads many other banks to hold off. That's not even including the potential for further trade restrictions. This is a Hail Mary effort to sustain Venezuela's economy (and thus the Maduro government), and it may ultimately amount to a risky experiment even if it goes ahead.

Bloomberg

Bitcoin treads water around $8,000 after its worst week of the year .
The price of bitcoin struggled to remain above the $8,000 level Sunday, following its worst weekly price loss of the year. Bitcoin (BTCUSD) was above $10,000 as recently as last Sunday, but has since fallen about 20%. As of Sunday night, bitcoin was around $8,020, according to CoinDesk.The leading cryptocurrency has fallen about 34% over the past three months. In June, bitcoin topped the $10,000 mark for the first time since early 2018.“Bitcoin’s recent price drop is a result of technical and fundamental factors,” Bitbull Capital CEO Joe DiPasquale wrote last week, according to Barron’s.

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