In a significant statement on Thursday, Venezuelan opposition leader Maria 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 reserve of btc.
btc's role in alleviating Venezuela's economic crisis
In a recent x.com/gladstein/status/1831735244598472757″ target=”_blank” rel=”noopener nofollow”>interview Together with Alex Gladstein, chief strategy officer at the Human Rights Foundation, Machado explored bitcoin's potential role in mitigating Venezuela's economic collapse.
Machado highlighted the effects of the financial mismanagement of former President Hugo Chavez and current President Nicolas Maduro, which she described as a tragedy that has decimated the Venezuelan bolivar.
The Venezuelan president highlighted the crisis of the national currency, 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 also provided worrying statistics, noting that inflation has reached an “unimaginable” 1,700,000%, with prices of basic goods doubling almost every two days. Since 2016, inflation has reportedly exceeded 8,000,000%, prompting millions of Venezuelans to flee the country in search of stability.
Machado characterized this situation as financial repression fueled by uncontrolled money printing, despite Venezuela's vast natural oil reserves, which are among the largest in the world.
bitcoin as the 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 of 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.
Additionally, Machado claimed that bitcoin donations are immune to seizure in the country, positioning the cryptocurrency as a crucial element in her campaign for a peaceful transition in Venezuela. She advocates leveraging bitcoin technology to foster the change the country desperately needs.
While Machado's proposal to make bitcoin a national reserve does not explicitly draw on Trump's recent statements, there are notable similarities. Trump has discussed that establishing a national bitcoin reserve could serve as a strategic reserve asset, essential to addressing the US national debt, which has reached $35 trillion.
At the time of writing, the largest cryptocurrency on the market, btc, is trading at $56,590.
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