In a significant statement on Thursday, Venezuelan opposition leader María Corina Machado announced her plans to use Bitcoin (BTC) as a national reserve asset, similar to former US President Donald Trump’s recent endorsement of a national BTC stockpile.
BTC’s Role In Alleviating Venezuela’s Economic Crisis
In a recent interview with Alex Gladstein, Chief Strategy Officer of the Human Rights Foundation, Machado explored Bitcoin’s potential role in mitigating Venezuela’s economic collapse.
Machado highlighted the effects of financial mismanagement under former President Hugo Chávez and current President Nicolás Maduro, which she described as a tragedy that has decimated the Venezuelan Bolívar.
The Venezuelan leader highlighted the national currency crisis, once stable at around 3 to 4 units per US dollar, stating that it has suffered a huge devaluation, losing 14 zeros in the last two presidencies.
Machado further provided concerning statistics, noting that inflation has reached an “unimaginable” 1,700,000%, with prices for basic goods doubling almost every two days. Since 2016, inflation has reportedly surpassed 8,000,000%, prompting millions of Venezuelans to flee the country in search of stability.
Machado characterized this situation as financial repression fueled by unchecked money printing, despite Venezuela’s vast natural oil reserves, which are among the largest in the world.
Bitcoin As Key To Building A New Democratic Nation?
During the interview, Machado also emphasized that many Venezuelans have turned to Bitcoin “as a lifeline” during this period of hyperinflation, using the cryptocurrency to safeguard their wealth.
The leader described BTC as a humanitarian tool and a vital means of resistance against the economic crisis. In her vision for a “new democratic Venezuela,” Machado sees Bitcoin as an integral part of rebuilding the nation’s wealth and helping its most impoverished citizens while ensuring property rights.
Moreover, Machado asserted that Bitcoin donations are immune to seizure in the country, positioning this cryptocurrency as a crucial element in her campaign for a peaceful transition in Venezuela. She advocates for leveraging Bitcoin’s technology to foster the change the country desperately needs.
While Machado’s proposal for Bitcoin as a national reserve is not explicitly modeled after Trump’s recent statements, there are notable similarities. Trump has argued that establishing a national Bitcoin stockpile could serve as a strategic reserve asset, essential for addressing the US national debt, which has reached $35 trillion.
At the time of writing, the largest cryptocurrency on the market, BTC, trades at $56,590.
Featured image from DALL-E, chart from TradingView.com