The dialogue between the superpower USA and Venezuela is becoming increasingly tense, as the US threatens to impose further sanctions if Venezuala does not want to obey the instructions of the United States. Now, major American payment companies are also expected to cease all business in Venezuela.
Bloomberg reports that the US government is considering hiring payment companies like Visa and Mastercard to stop any transaction processing in Venezuela. This is necessary and necessary because Venezuela refuses to put the proposed measures into practice. This move joins efforts to block access to financial resources for President Maduro and other government officials. Secret sources report that other companies in strategic sectors such as aviation or agriculture are also affected.
In addition to Visa and Mastercard, other major financial service providers could fearfully restrict or completely end their activities in Venezuela in order to avoid perceived US consequences. The logical consequence of this is that more and more citizens are losing access to finance and are thus dependent on alternatives. President Maduro created the state-owned crypto currency "Petro" last year, which is supposed to be covered by the country's oil reserves, but this has never been confirmed in an official audit. In many sectors of the economy, digital assets such as Bitcoin, Ethereum and Co. have been accepted as a legitimate form of payment.
Ongoing economic and political developments led to a flight to Bitcon to hedge a small portion of their small fortune. Since the beginning of this year Venezuelans have traded BTC worth more than $ 60 million. This shows how hard hyperinflation is finding its way into the country. However, a prolonged power outage in early March caused Bitcoin trading volumes to fall again by about 40%.
Governments can put companies like Visa and Mastercard under pressure and "dictate" them to do something. Bitcoin, on the other hand, is not subject to any central institution, but is non-political, globally applicable across borders and free from any state censorship. It remains to be seen what further developments will be observed in Venezuela.
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