Venezuelan Opposition Leader Maria Corina Machado has proposed a Strategic Bitcoin reserve for the country as hyperinflation and currency devaluation wipe off 14 zeros in value from the country’s local currency.
Venezuela looks to join El Salvador, which adopted this strategy a long time ago and is in the habit of acquiring one Bitcoin daily.
Maria Machado, who is still contesting President Nicholas Maduro’s legitimacy, has called for a national bitcoin reserve as a solution to the hyperinflation ravaging the country.
Machado revealed her thoughts on Bitcoin and its role in the Venezuelan economy in a recent interview with Human Rights Foundation CSO Alex Gladstein where she highlighted the degenerative process the Venezuelan economy is going through fueled by the pillaging of the country’s resources by Maduro and the devaluation of the nation’s local currency.
She believes a strategic Bitcoin reserve will go a long way in arresting the state of the Venezuelan economy.
Bitcoin as a hedge against inflation
Venezuelans are turning to Bitcoin as a hedge against inflation as prices of essential goods double in price every two days. The former deputy of the National Assembly of Venezuela pointed out the country’s economic woes while highlighting how Venezuelans are using Bitcoin to protect their wealth and exit the country.
Venezuelan’s economic woes started with government-imposed price controls and a sharp decline in oil prices which led to the bankruptcy of state-run oil companies. The government in response to the situation printed more money which resulted in serious unemployment, skyrocketing prices, and Collapsed GDP.
The situation was worsened by international sanctions on Venezuela by Western interests leading to a mass emigration of citizens from the country in search of work and a better life.
Venezuela’s population is at an all-time low due to these emigrations. Machado’s plan for a strategic Bitcoin reserve stems from the fact that Bitcoin can be used as a hedge against inflation and thus act as a solution to Venezuela’s economic woes.
Bitcoin Donation campaign to fund opposition efforts
Maria Machado revealed that their opposition movement was unbanked and her reaction to that is the launching of a human rights foundation campaign to take bitcoin donations and fund their operations.
Machado hopes to use Bitcoin to restore Venezuela’s financial independence and use its decentralized nature to prevent authoritarian control over the country’s wealth.
What to Know
- Nicholas Maduro was announced the winner of the recently held presidential elections amid claims of election manipulation and rigging.
- Elon Musk, owner of X started an online campaign to get Venezuelans to defend their alleged votes and topple the maduro regime through protests.