Poverty-stricken Venezuela considers adding its cryptocurrency holdings to its dwindling international reserves, Bloomberg reports. The central bank’s coffers have dropped to only $7.9 bln, the lowest level in more than three decades.
Petróleos de Venezuela, S.A. (PDVSA), the state-owned oil giant, appears to own crypto (namely, Bitcoin and Ethereum), and it doesn’t know how to manage its digital asset holdings in the most efficient way.
Crypto can also be seen as a solution for skirting the US sanctions that were imposed on the Nicholas Maduro-led socialist state. However, it wouldn’t be able to pass mandatory KYC on cryptocurrency exchanges if they were to sell it on the open market in order to pay their suppliers. Hence, they want to deal with these entities through the country’s central bank, which will not face the same amount of roadblocks.
Venezuela tried to launch its oil-pegged Petro cryptocurrency, but the state-backed cryptocurrency failed miserably.
As reported by U.Today, North Korea was accused of running three hacking groups that stole hundreds of millions of dollars from major cryptocurrency exchanges. On top of that, the hermit state is already working on its own coin that will be similar to Bitcoin.