Bitcoin as a national reserve asset : The opposition's bet to rebuild Venezuela !

The Venezuelan opposition is exploring radical solutions to rectify the dire economic situation in the country. Indeed, they propose to use Bitcoin as a national reserve asset. Stabilizing this economy devastated by years of mismanagement involves recognizing Bitcoin as a national reserve asset.

Bitcoin as a national reserve asset : a bold proposal

During an interview with Alex GLADSTEIN, Chief Strategy Officer of the Human Rights Foundation, María Corina MACHADO, a leading figure of the Venezuelan opposition, revealed her plan to use Bitcoin (BTC) as a national reserve asset. She states that it’s time for Venezuela to turn to modern solutions to rebuild its economy, and Bitcoin is the key. MACHADO justifies this decision by the failure of the bolivar, the national currency, which lost 14 zeros between two successive presidential terms. This devaluation, fueled by an uncontrolled inflationary policy, has driven inflation to 1,700,000% according to her estimates.

She also recalled that despite the significant oil resources of the country, the disastrous economic policies of Presidents Hugo CHAVEZ and Nicolás MADURO have led to a complete collapse of financial stability. Today, according to her, millions of Venezuelans are looking to protect their wealth through Bitcoin, which has effectively become a “humanitarian tool” amidst the crisis.

Bitcoin as a strategic lever for economic sovereignty

MACHADO sees adopting Bitcoin as a means to build a “new Venezuelan democracy.” She explains that the crypto asset, being incorruptible, can protect citizens’ property rights and ensure that external donations or investments are not seized by the current regime. For her, Bitcoin can help rebuild trust in the Venezuelan economy and restore the wealth of the poorest.

She is not the only one considering Bitcoin as a strategic tool on a national scale. Former U.S. President Donald TRUMP has also mentioned the idea of building a national reserve in Bitcoin to counter the colossal U.S. debt. If MACHADO’s project comes to fruition, it could serve as a model for other crisis-stricken nations looking to break free from international financial pressures.

Adopting Bitcoin as a national reserve asset by Venezuela is a proposal as bold as it is risky. If successful, it could radically transform the country’s economic trajectory and offer an innovative model for other struggling nations. However, the challenges are immense: from regulating the crypto market to the inherent volatility of Bitcoin, not to mention potential opposition from the current regime.