Bitcoin Forum

According to the latest information from Bitcoin.com, they have reported on this. I don't know if this is a bad effect or a good effect on the market? Everyone can make a point here.

The more demand there is to Bitcoin, the better. That is the basic logic of something whose value is determined exactly by that rule.

This kind of news is actually widespread even before. It has already spread before that Venezuela will make use of Bitcoin to get away from the sanctions imposed upon them from their western enemies. And this is really a good development for Bitcoin. Perhaps the only negative thing that one can deduce from it is that associating these days with Venezuela's Maduro government is bad for its reputation.

Venezuela is about to be classified as a rogue nation, to put you into context the highest officials of the country taken a trip to some of the known rogue nations in the World.

One of them is in Nort Korea, another one is in Cuba, you get the image of what's happening?

But even after all I have said about Venezuela, that's not something bad for Bitcoin.

Criminals have been using bitcoin since it's born, and that's haven't made it illegal. Yep, I got you, some investor might be afraid of Bitcoin being used as a way to clean money for bad nations and criminals.

But bitcoin is Pseudo anonymous that means that any movement can be traced, it's easy enough for a developed country to put an AI that search for the Addresses of the funds held by one of this governments

And then putting sanctions or even seize the money, if they try to clean it.

In short: Is not good but it's also not bad for bitcoin.

What about Venezuela's central bank, bad or good? I am always afraid that the volatility of bitcoin will affect the assets of the Venezuelan nation. If so, the value of Bitcoin is only $ 100 one day, then Venezuela will be in crisis again?
From my point of view, I think this is an extremely wrong decision of them. Bitcoin is one of the high-valued assets because of manipulation, when a country holds so many assets, the fate of that country will be so precarious.
A good central bank will always want to hold low-yielding but sustainable types of assets, I think the central bank asset manager is in trouble.

Not only Venezuela, China and Russia too.

Looks like the communist nations are in preparativo to something big coming.

The great crisis is coming?

A source would've been great but as it stands, there are multiple national banks around the world which are holding onto cryptocurrencies. This might not be evident on the surface level but digging deep, there seems to be a direct or indirect link between the huge amount of funds and big banks being associated with it.

Coming down to the case of Venezuela, the country has been undergoing hyperinflation for a few years now and with an unstable government, the door to all sorts of corruption is open which could include laundering money through crypto via the central bank.

A link to the article would have been helpful. Back on topic, I'm not surprised. I remember South Korea accusing the North to be behind a huge hacking of one of their exchanges.

For all we know they could be already using bitcoins to pay smugglers to bring in goods they normally can't due to embargoes. Or they could be preparing for a crisis and so are stashing on crypto, which is not a bad idea considering their own fiat is practically worthless.

Or both.

This is actually true because Venezuela has a such a big money crisis when inflation has rise on the point when money became almost worthless and as far as I know with the lowest monthly payment you can get a hamburger and that's it. Regarding the situation, Venezuela and its citizen are getting into bitcoin like crazy and not only in bitcoin , they seemed to love masternodes and they are buying cheap masternodes like Arion and similar cryptos.

The central bank of Venezuela is holding and buying Bitcoin like all the other Central Banks , there was a video from 2015 where the EU parliament encourage the banks to try and hold at least 1 bitcoin and since then I'm sure they bought a lot of bitcoins and ripple and we can see the effect in the current prices.

Also a new a new recession might be in sight as the charts don't look so good so the effect might be bad in the end but we will see.

Yeah, but bitcoin isn't exactly a safe-haven asset to be holding in the event of a crisis--unless those countries are expecting the end of the banking system (which was feared back in 2008 or so).  What if bitcoin continues to decline in value?  They're going to be left holding a depreciating asset, and it doesn't make sense that they'd do that.  If Venezuela was going to be stocking up on anything, I would figure it'd be gold & silver, not bitcoin.

Just a suggestion: you might want to provide a link when you're sparking a discussion based on news reporting.  That way we don't have to go digging for whatever article you're referring to.

The Venezuela's economy has crashed considerably in past due to Oil price crisis and bad administration. Their currency was pegged against the USD at a fixed rate by government but in reality common public was not able to buy the currency at that rate. This rate was available only to some bureaucrats and top leaders who were getting richer and richer and common public was left with no option but to trade this currency in the local black market where rate is 20-30 times worse than what pegged by government. This way Venezuela's economy is imploding more and more. So the only way out left now is cryptocurrency which is why there government is buying BTC in order to strengthen their economy with a more concrete asset.

I dont think its a negative more a sign of the times, eventually I expect far greater usage of both gold and other commodity agreements.    The trend over the majority of my lifetime has been towards holdings of debt, we have a crescendo and then a silence much like the drama of an opera we will have to start again with proper value attributed to various alternatives.   Venezuela is discovering this today because they are banned from Dollar but in any case the world will move away from its peak usage of just one nations currency in this way.

Dollars are heavily held as cash by quite large criminal enterprise as its liquidity allows easy disposal but Bitcoin is always compared to gold and on at least this dynamic its probably a good fit.    This is not really a negative on Bitcoin itself, its a free currency available for use by anyone.   The first use of BTC in Venezuela was by its citizens as protection against its government and their capture and destruction of their national currency, for similar reasons Bitcoin can count itself popular in China and owes some of its popularity for helping people all over the world recapture some remnants of capitalism in their own finances.
    I mention gold as it was and is used in Venezuela as freely exchangeable, I believe the government is promoting gold mining within its borders and that makes alot more sense for them then the poor attempts to create a crypto currency.   They had no understanding of free enterprise but commoditys can be utilized even with a rough understanding, sadly all the oil they have requires more attention and expertise to refine properly.

I'd agree that North Korea is a rogue nation. Venezuela and Cuba, not so much, I think they are stigmatised because they dared to stand up to the US. Venezuela was doing well for a time under Chavez, but eventually the massive sanctions have the desired effect.

If a rogue nation is one that is a threat to peace in the world, then the US and Israel have got to be up there. Plus my home country, the UK - one example, we've been happily exporting arms to Syria, killing innocent civilians for profit... but you never see the UK on a rogue nation list.

Maduro (Venezuela president) sended all gold reserve to Russia few months ago. Russia, China, North Korea, Venezuela and Cuba never worked together like now, helping eachothers and protecting yourself from USA.

Maybe the craziest acts coming from USA is only a predict about the future crisis, like the atack in arabic crude oil reserve.

We need to pay attention to follow the market and choose the best for our money.

All of this can be only conspiracy theory, but have much sense.

The oil price was doing very well, if we look back under the regime range annually for each ruler and compare oil price it should show Chavez had a far more favorable tailwind and the benefit of previous work and assets built up.
   This country has the largest proven oil reserves in the world, potentially its richer then Saudi Arabia, we have to examine the details of why their fortunes differ so greatly and part of it is the oil type extractable and how it relates to the oil price.   The Saudi family have a cost of extraction and sale even below $50 and no great effort is required beyond local tensions, Venezuela has heavy sour crude with sulphur that requires refinement before sale.
   Venezuela  cannot afford to nationalize their industry when sophistication and efficiency are required to receive a profit, if they become poor it is by they own lack of understanding on this.

Fundamentally there is no difference between North Korea, Venezuela and Cuba. It's not the people there who are rogue, but the leaders and their elite minions. North Korea is taking things to another level, but we also shouldn't forget about the US propaganda machine that's out to make North Korea look like a threat to the western world in every possible way.

I have seen the US commit more crimes against humanity than any other country most people seem to fear. People however are too ignorant to look through that to read between the lines.

If this is real i can't imagine what might come up of this and to be honest this seems an alternative plan to them saving the economy from inflation or a way to save up for what it might be the next world's currency, imagine if they were like holding a large amount of bitcoin and at some point where bitcoin reach 100k they would have a reserve that could change the course of their economy, and the economy is so bad right now that their only solution to fix it is to go completely crypto and scrap their fiat which is worth nothing.

Well it's a good idea for any economy to hold cryptocurrency because the upside is much greater than the minimal risk that comes with investing in it. Hopefully it works out for Venezuela and their current economic nightmare changes for the better!

Are you new?  They not only holding cryptocurrency they issued cryptocurrenncy named Petro. That was years ago.   That si probabyl reason why their currency is slosing value so fast since they daytrade.

Yeah, after the super inflation of their currency they transfer to cryptocurrency, I just have no news regarding what's their status regarding running a country using a cryptocurrency as mode of payment. that is the first step for other countries that is suffering on inflation to transfer into crypto.

I guess you better sight the link here so that people will know what is the real story. Anyway, it is a good point that government are engaging on cryptocurrency specially if they are truly holding coins, they are not doing that to demolish the cryptocurrency but they had the plan in the future because they dont waste money to hold and stay those coin in their system without any futuristic plan.

I remember reading a quote from Satoshi about WikiLeaks, and the heat it brings that could destroy Bitcoin in the early days.

I think "the heat" from a rogue nation like Venezuela won't disrupt Bitcoin this time since our network is already robust. But I agree with you about the effect won't be significant. Not like US or EU tried to use Bitcoin as their reserve.

It's not like they want to invest in cryptocurrency or love it, they are looking for solution to deal with U.S. sanctions against Venezuelan President, according to some sources " Petroleos de Venezuela SA  had requested the central bank look into the matter after the oil producer ran into difficulties receiving payments from international clients due to U.S. sanctions against Venezuelan President Nicolas Maduro’s current regime. Cointelegraph (https://cointelegraph.com/news/venezuelan-central-bank-is-considering-holding-bitcoin-and-ether)". About bitcoin decreasing in value to $100, you have to understand that governments have experts, they are not gonna hold bitcoin blindly like unprofessional trader.

Until now they still have not made Crypto as a mode of payment, but if we look at their cases that they have long experienced, we are sure later they will make Crypto As a mode of payment in their country. Inflation has really made the Venezuelan state suffer, we hope that they will be able to maintain economic stability in their country.

If the central banks of other countries that are seem to be working fairly are greedy and therefore bad, how much more of a central bank of a totalitarian country ruled by Maduro?

Your fear of Bitcoin's volatility that might adversely affect the Venezuelan nation shows that you seem to care. I bet you are an outsider at that. Well, Venezuelans should start feeling the same. Their country is totally in the hands of someone who seem to be not in his right mind. And I doubt that their central bank is independent enough to act based on what it deems right and best, if it still has that sense. If it has a bank asset manager, the man must be a mere puppet.

Here he is not referring to the people of that country, he is referring to the central bank!
It is normal for people to hold coins, but for a central bank, it will be a disaster when the prices of coins are constantly dumped. The economy of that country will go down and the government must borrow from another country to pay for the country.
This is really a risky decision by the central bank of Venezuela, just hope that bitcoin will increase and their people will be less miserable. :'(

Honestly, I believe that the main reason for accepting payments from PDVSA (Petroleos de Venezuela) is due to the total desperation they have at the economic level. Based on traditional solutions under normal economic study there is no solution (unless the government leaves completely without a trace).

But they have tried many economic formulas to see which one may work for them and none have been successful, I think that if they work with investments with international reserves based on Bitcoin and Ethereum, it is the last thing they can try to see if they have any kind of recovery. Because the economic disaster that exists and its crisis coupled with its exorbitant inflation, are economic scenarios never before considered for the study, since it escapes all reality, but that is happening and living.

So you think that bitcoin.com is a legit source of information that posts real news?I think this is fake news.
Wasn't bitcoin.com ruled by Roger Ver and the BCH supporters?
If this is really true,good for the central bank of Venezuela,but I doubt they will buy and hold bitcoins.

We all know that Venezuela is experiencing crisis in their country. As for their government and central bank holding a cryptocurrency, I can't say whether it is good or not. The answer would still depend on how the government would use crytpo and how it could affect or even help their country from what they're experiencing right now.

It would be much appreciated if you could include the link of the article for more information regarding the topic.

This wont help them with economy

I don't see anything wrong about holding or hoarding thing as it will favor the Crypto currency if they do that and they are also not the big whales so that they could manipulate the Crypto market. Venezuela is in economic crisis now so maybe they believe that Crypto will also help them to recover financially.

The last time I have read an article about Venezuela was when they had an econonic problem and planned to use crypto as an alternative or a way to survive in the crisis. I doubt if it could help them.in a big way, but crypto is not a complete solution and will never be. Crypto is not a magic thar can turn someone instantly rich as what some newbies think, what more a whole country. They need a change in their government, remove all the culprits who had put their country to crisis and start fresh.

A part of crisis in Venezuela economy its caused by USA.
Every one know, USA every look to attack countries with big oil crude production.
And Venezuela have support from Russia

Venezuela is a bankrupt rich country.
Since the death of President Hugo Chaves, the economic crisis has begun. Because of the large oil reserves, 95% of Venezuela's income depends on oil exports. When oil prices fall state revenues also go down. In 2019 Venezuela experienced devastation due to high inflation rates.

The US economic embargo on Venezuela has further worsened the condition of the people, with around 4 million Venezuelans displaced. The issue regarding the Venezuelan Central Bank is likely to be true, following a request from Petroleos de Venezuela SA (PSDV) which is having difficulty receiving payments after being isolated by the Americans. So PSDV is looking for ways that buyers can pay with Bitcoin through the Central Bank and then the central bank will distribute it to oil suppliers in Venezuela.

Some time ago also Venezuela received the first Bitcoin ATM. So the issue of central bank saving bitcoin I think is correct.

If they are holding cryptos, this is good for price, but Venezuela is a weird country, they have one of the largest petroleum reserves in the world and people are starving  ???

So they (governments) are not trustable and I don't think they have enough to make any difference on the market

Generally speaking and assuming that this is really true, then there is a big probability that this can be helping the cause of Bitcoin. However, we also have to understand that one of the most important reasons why this country can be adopting Bitcoin is because they wanted to circumvent trade embargo imposed on them by USA and other entities so that this scenario can lead to Bitcoin being labeled as a tool of rogue countries. On the other hand, this can be a model for other countries in dire straits to also adopt. Let's see what can be.

Now you reached my point. Buying Bitcoin, Venezuela can avoid a little more from USA claw.

Thats fun how USA every time is envolved against countrys when have crude oil in the scenario. 

Crypto is indeed not a complete solution in overcoming economic crisis in their country, but crypto is able to make them survive crisis rather than holding their own currencies. Therefore some time ago the Venezuelan government gave crypto companies chance to enter their countries, this was also an attempt by Venezuelan government to maintain the country's economy so that it would not deteriorate further.

The reason that occurs is the oil promotes an unequal economy and a country more easily dominated via its reserves.     The government of Venezuela has consistently seized assets from private companies and forced other actors out in favor of themselves.     
  Its not the USA that is the common point but a country reliant on one resource is unfortunately more vulnerable to military type regimes, we've seen this in Africa with diamonds and continual civil wars that last for generations because controlling that basic resource allowed the violent commands of a few to control the many.   USA is especially concerned about the fall of this country because it represents drug trafficking and also a possible local base for Russia to stage military attacks, the Cuba problem could be repeated and Venezuela could be a puppet regime quite easily.   Its not a one off instance, I dont think USA is the common point there more the commodity economy.

The crisis is already here, if you haven't noticed Venezuelan people literally starved to death and Russia has been doing really badly since the trade war thing in China vs USA started because they got a lot of help from their friends down south. China is doing not bad considering all things because they still have everywhere else looking to them when it comes to manufacturing but that is gonna last only so far.

Hence, they needed crypto and they needed like last year not now, so they are saving up some cash and putting it in their central banks to buy bitcoins (and god knows what other crypto) so they can be fine when USA decides to reelect trump if that ever happens. Its gonna be a rough time period for everyone around them as well so other should start packing too.

There are several other countries that have saved bitcoin as its digital assets

This draw me attention, which countries are holding BTC that you know for sure, not any speculation?
The only country I know it's Bulgaria

According to Bloomberg (https://www.bloomberg.com/news/articles/2019-09-26/venezuela-has-bitcoin-stash-and-doesn-t-know-what-to-do-with-it?srnd=premium), the Central Bank of Venezuela is examining whether it can
receive and transfer cryptocurrencies. Sources said the central bank has been studying
plans that would allow cryptocurrencies to be recorded as international reserves, now
near-record-low levels.

They are probably trying to hedge against depreciation of their own currency. This is no secret that BTC and ETH are commonly used in Venezuela  :)

It's not wrong to hold cryprocurrency to help the economy specially the bitcoin. But Venezuela as a nation is under political and economic crisis.Any money will do well in a country with a stable politics. The US will be glad to grind Venezuela government and economic to the ground.

https://www.bloomberg.com/news/articles/2019-09-26/venezuela-has-bitcoin-stash-and-doesn-t-know-what-to-do-with-it

Keywords:


So, the whole article is basically...we think that there might be the possibility of this bring treu and not false.  ;D



Ignore obvious shitsposts next time, he is just trying to make his quota....



Top 15 oil producers looks like this: (of course, counting out the US which ranks 1st)

Saudi Arabia,Russia,Iraq,Iran,China,Canada,United Arab Emirates,Kuwait,India,Venezuela,Mexico,Nigeria,Angola,Norway

Which and how many of them has the US attacked?

Eh, I should have kept the previous advice for myself  :-[

I believe that Venezuela can make a very big stir not only in the world of the cryptocurrency market, but also create a panic in the government of the United States of America.  I believe that everyone knows that Venezuela is practically the leader in holdings of world oil reserves in the world, which make up about 18%.  In addition, I want to mention the fact that the leaders of the Venezuelan oil and gas industry PDVSA  plans to use Ethereum and Bitcoin as payment for their suppliers.  In this way, they can circumvent the sanctions of the United States of America.  Based on this, I believe that cryptocurrency can dramatically change the situation with the economy of this country.

I would like to express my opinion on the issue rather than the effect on the market. cryptocurrencies are the key to the exit from the economic crisis. Because with crypto coins, people can protect their money against inflation for example argentina! You know Argentina is experiencing economic crisis and a few weeks ago, bitcoin reaches highest level in history on argentine peso basis. cryptocurrencies are the key to the exit from the economic crisis that is a certain truth!

If this is true , then it has no impact on the market .
it would make some sense , if there are sanctions in place for their central bank. In this case I Imagine, they have problems buying stable currencies as USD and EUR. Then the logical thing would be to buy some crypto which is better than their local currency.

I noticed that in countries that have problems with the economy - they accept Bitcoin very well. Examples are Venezuela and Argentina. People no longer believe in governments and banks, and that’s good for us. I mean cryptocurrency holders.

We cannot be sure which particular cryptocurrencies the Venezuelan central bank are holding. It could be Bitcoin or some altcoins or stablecoins or perhaps a combination of Bitcoins and altcoins. I guess this will have an impact to the market. Every single buy order will have an impact to the market and if an individual whale could cause a movement in the prices then a central could do it several folds. A central bank will not buy a couple of BTC only or a handful of ETH or a hundred of USDT.   

How accurate is this information? I'm almost certain that countries like Venezuela would have governments that are holding BTC due to their economy and their involvement with BTC.

If I had to guess 5 countries holding BTC, I'd say USA, China, Singapore, Australia and Korea. All seem like countries that are interested in controlling or investing in BTC.

Better to have them holding something worth of value outside of their own countries currency so I cant see the banks there turning down this golden opportunity to get their countries economy out of the shithole it is in right now. :-X

Never put a big news here without links that will support your info because hearsay or speculation wasn’t deserved to be here and better transfer to this section
https://bitcointalk.org/index.php?board=57.0

But if that’s legit then this is one good option for other countries to do as well for their economy’s future ,Venezuela on the other hand is very desperate and willing to do,risk and spend everything just to grow their economy again

After the situation with ElPetro, was almost destroyed fiat sovereign Bolivar of Venezuela-it is even logical. The country is suffering from high inflation, which has only been worsened by President Maduro's attempt to create a state cryptocurrency.

Exploring and accepting changes is the risk they have to take to be able to survive in their economic crisis. This might be the chance for them to overcome the low value of their currency as more improvement happens in cryptocurrencies than their own currency. Their government must also provide tutorial or seminars to let their people know how they will benefit from it.

Whether the central bank holds BTC or not is quite irrelevant.

They are obviously not pushing for adoption in the general sense, and if they are holding decentralised cryptos, it's not because they want their citizens to be holding them also - it's to self preserve and hedge against the imminent collapse of the bolivar which is already occurring and to pursue national interests.

I doubt that there will be significant structural reforms of real push for currency reforms with Maduro still in office. And don't talk to be about Petro, it's a scam.

Their plan didn't work because what they were trying to create was far from the concept of "cryptocurrency." In anticipation of the release of ElPetro, there were frequent raids on miners in Venezuela. It is possible that the bitcoins that the Bank now holds belong to the victims of these events.


Yes. ElPetro is a state-created Scam. The most interesting thing is that I could not find any information about this coin. Neither of the rounds of funding. Nothing. All we know about this bench are mostly quotes from president Maduro.

I think this is a clear sign that cryptocurrency is headed in the right direction and its good to see a country which such high inflation investing into crypto as a means for retaining wealth instead of more stable options such as gold or other valuable materials. Additionally, this creates more demand for crypto and helps increase their value which in turns benefits anyone who has invested into it.

Overall, this increases the chance of widespread adoption of cryptocurrencies, in fact, I am sure that many central banks would be holding cryptocurrencies but have not revealed this information. If countries around the world showed that their government/central bank was holding cryptocurrencies, the demand and value of them would skyrocket.

If they are holding cryptocurrency, it depends on the cryptocurrency they assume to be holding, is it the popular bitcoin or is it the new cryptocurrency they are creating which if it is the new cryptocurrency, it would just be a way of them making more money. I understand that they are creating their own Petro coin, and if this coin being created is being held by them, then they will do everything possible to just push it to the very best end.

Holding cryptocurrency is just going to be like the way satoshi is holding 980 000 of bitcoin now and you can imagine how much that is worth now, so if Venezuela creates a currency and they are holding about 10 millions of it and they push the coin to at least reach 10 to 50 dollars, imagine how much Venezuela would have made form that.

Big stuff like central banks and huge banks holding bitcoin is both a great news and a horrible news for a simple reason. If you private banks and central banks all hold bitcoin that means there is less bitcoin in the market, people could still try to trade bitcoins but there will be less in the market nevertheless, even though miners are printing bitcoins everyday that will be always the case even if the banks didn't hold it so all in all we are left with less bitcoins in the market making it a scarcity so it gets higher in price.

However, bad side is they could sell a ton of bitcoins all at once, them buying thousands all at once and holding profits us but them selling thousands all at once would hurt the market and it sometimes happens as well so all in all its a big risk big reward situation for us small investors.

The story is more complicated than "Venezuelan central bank holds cryptocurrency".

It turns out that the state owned oil company wants to send bitcoin and ethereum to the central bank because it can't get hold of dollars:

https://www.bloomberg.com/news/articles/2019-09-26/venezuela-has-bitcoin-stash-and-doesn-t-know-what-to-do-with-it

I think the title of the thread is misleading, and you have not attached any source of your information.
i have to search it to confirm if the information is correct,.

the title says' is holding cryptocurrency, but all the information I found says. they are still planning or wants.

Venezuela reportedly wants its central bank to hold bitcoin (https://www.engadget.com/2019/09/29/venezuela-wants-central-bank-to-hold-bitcoin/)
Venezuela Readies Central Bank Crypto Payments  (https://www.pymnts.com/cryptocurrency/2019/venezuela-readies-central-bank-crypto-payments/)

Venezuela's Central Bank Indicates Plans to Stockpile Bitcoin (https://news.bitcoin.com/venezuelas-central-bank-indicates-plans-to-stockpile-bitcoin/)

I know there are some sanctions but I'm quite surprised they are not able to receive dollars for the oil sold, this is really a serious restriction if no bank is willing to clear a payment to them.   I didnt think the system was so tight as to prevent that, obviously they have the problem of dealing in millions and billions as its a great deal of oil but still amazing if they can find no alternative.
   Also this country has always had some holdings of gold, can they not use that for exchange of value and Venezuela even has some gold mining in the country.   The whole region has at least some gold deposits from volcano activity over the history of the continent.     BTC is easier to transact but its quite a dire situation if they are unable to do business through multiple options of payment.

 My conclusion from all this is they are incompetent and have no little or no planning for the restrictions in place for a very long time.   Ironically it could be a positive if the regime does fall over from their own failings, in every economy its true that failure can represent a positive so long as it allows a better system, company or operation to then begin unopposed by the idiots who screwed it up previously.     Anyone who loves their country should step aside when they fail, these people only love themselves.

The system is amazingly tight. You either deal with the major American banks or you deal with the Swift network based in Belgium that is always careful to comply with American regulations because they don't want their network blocked from accessing the US or American banks. America runs the world with it's banking control, not it's gunboats.

I guess people could get round it by using yuan or roubles - but those currencies are unstable and keep weakening, so it's actually safer to use something like bitcoin or ethereum.

There is nothing wrong if a country's central bank believes the right thing to do at the moment is to hoard bitcoin as much as possible depending on their economic need and their intended target. The effect on the market could be good or bad depending on the side one founds himself and the interpretation one is giving to it.

Assuming that the amount they acquire is huge enough to make impact on the market, then looking at the good side, it means there would be scarcity which would then increase the price of bitcoin in the open market. It also sends a message to the general market that if a whole government could be acquiring, then it shows a further testament that this is the real deal.

On the other hand, if looked at with some level of skepticism, it could mean that what they are trying to do is to disrupt the market by acquiring much now and then dumping thereby collapsing the entire market which would take like forever to recover. Going further on that could even mean that acquiring much means acquiring control that bitcoin philosophy negates from the start.

Well that part I dont agree, I'm not a fan of either country specifically their governments politics but their central banks have for over ten years been net buyers of gold.   In fact China is the worlds largest buyer of gold, importer and producer of gold and they export no gold bar some basic jewelry perhaps.     That would be a big deal but they have one of the largest nations also and previously had no proper reserves, mostly they hold US debt as an asset.    The reason I mention this is the currency issued relates to the assets which back it hence I would not call these two currencies poor especially.
   Venezuela is being excluded from the US debt and currency market and somehow they are not using gold as much as they might which is surprising to me.   Yuan or Rubles should be suitable but I presume Venezuela does not have a good trade exchange with these countries and so its not as feasible as Dollars which are used and kept globally.
   The strange thing here is that China is a country that greatly imports oil and does not produce much, they are major buyer from the middle east but in theory there is an opportunity to take over some of the production of Venezuela and the refinement required.   It must be that China does not believe there is a long term investment potential for that route where as Russia has built up some usage of the country, they have no need for the oil produced and I guess its just a military asset for them to have a foothold in the region.   Either way the ability for dollar to dominate trade done seems to cause ongoing problems in discouraging trade.

We don't even know how much are they owning for their country yet. They might own some but the question really is what is the main point on having them in the first place and until know all I see are just confirmations without any kind of actual detail on how much they have, what price they have bought it, and what are they really planning to do with it in the first place. I have posted on another topic related to Venezuela about how can Bitcoin save them from the hyperinflation they are experiencing and I really didn't believe that they are trying to go for it this fast. I still don't think it can save their assess on fixing their economy especially if they don't know how to trade their Bitcoins properly.

It is strange that Bloomberg is now resorting to publishing clickbait articles to attract traffic. Venezuela seems to be desperate to inflate its Forex reserves, which as per the latest reports amounts to less than $8 billion. They want to inflate the value of the holdings, so that the national currency (Bolivar) could be exchanged for better rates.

But from where they are going to get Bitcoin or Ethereum for their reserves? A country which can't afford to import toilet paper is now trying to amass cryptocurrency? I think they should stick to their old plan of accumulating gold from the wild cat miners of the Amazon rain forest and exchanging it for foreign currency in the international market.

After economic crisis faced by venezuela they have trying to legal cryptocurrency and want to recovery back their economic crisis, many country faced economic crisis because they always depend their condition only with cash money and never for adopting bitcoin as legal digital currency, how ever when have bitcoin they can increase their money.

The whole issue has actually been severely muddled to the point that we cannot tell anymore which part of it is real news or which part of it is only the product of interpretation or rumor. I guess the Venezuelan government has not issued a clear statement on this. People are taking tiny hints and made everything explode with all their interpretations. There really are no resources released by Venezuela itself to clear all these.

If I may add, if the Venezuelan government thinks that this is going serve as the redeeming factor to their socio-economic and political woes, they are badly mistaken. They need to wake up.

Because Venezuela is in despair.they have all options to be used in any chances,sad to say about their desperation but they have people to feed and a government to run and if they saw small amount of chance thy will grab this at any cause

Cryptocurrency is fast growing and sooner or later this will be the currency of the world that’s why they were just being prepared(though risky as I know)

Well, it is not a bad idea. Think about it this way, if the oil companies can't work with the international companies to get paid in dollars because of banks and sanctions and what not then they could get paid in bitcoins without using any banks which kinda also shows how amazing bitcoin is to go around the loopholes of these kinds of limitations.

When they get paid in bitcoins they could pay the banks their money owed in bitcoin and then those banks could cash that out in other nations for bitcoin (or even their own citizens if anyone wants to buy) but the amount of money they are trying to sell is easily bought in global search. Hence I think not using banks for the oil trade but using bitcoins would both help bitcoin itself and also Venezuela as well.

I think this is a bad sign. What do you think about venezuela government always holding a lot of money can fluctuate by 20% - 30% in one night?
No financial specialist will solve this problem and make appropriate financial policies for the country in the future.
In my opinion, the Venezuelan government is making a farce and doesn't want to redevelop the country anymore. Sadly sad for innocent people.

I know that we cannot trust any kind of news coming from Venezuela anymore especially if its coming from crypto news websites as they just pad and augment local news coming from them but if this thing has any truth with it I don't think Venezuela's government doesn't really know what they are doing on turning to another cryptocurrency as a saving grace for their situation, without going into detail we don't really know if they are in fact holding cryptocurrencies. Without any kind of first hand sources for news coming from Venezuela we really don't know what situation are they really in or have it worsened ever since.

First of all, the Venezuelan government is not holding any cryptocurrency. And I don't think that holding cryptocurrency will give them any additional advantages, as long as their economy remains in tatters. What they need to do is to clamp down on inflation. And that is not going to happen anytime soon, because they are printing the fiat currency without any limit to make salary payments to the government employees. If they stop printing the money, then the inflation my ease, but the government employees and the army will rebel against them.

And I can't think about any advantages if they decide to hold Bitcoin or other cryptocurrency. The problem with Venezuela is that they are unable to afford imports of medicines and essential commodities, due to a fall in the Forex reserves. And how Bitcoin is going to solve this issue, when none of the sellers will allow them to make payments in BTC? On top of that, if they use Bitcoin widely then the value of the national currency (Bolivar) can slide down even faster.

Well, I am not very sure about the reality but the news is in the air that Venezuela’s central bank is holding bitcoin and if we think logically then it appears to be true. No matter how rich or poor a country is, the officials are never poor and they are also never behind times. The major concern should be whether the officials of Venezuela going to utilize bitcoin for the betterment of the state or not. Obviously, bitcoin can bring change economically.

Where did you got to know about this holding of crypto currency by the central Bank of Venezuela? Did they announce it themselves or is it some sort of "fact" that has been circulating around (more like rumors and high chance the words got twisted from "might be holding" to "is holding"). A link to the article would be nice.
I honestly think most of the central banks around the world are actually holding into crypto currencies. Only some admits and others keep it a secret. You can always invest on crypto without others even knowing!

He don't have a reliable source, it only makes a fud.  But if that country legalize bitcoin it will be a good news for all of us, it will makes a news then other countries might do the same thing as them as well. I hope that their economic status will be stable and also this bitcoin can help their citizen. But hoarding a lot of bitcoin if its true, the circulation wil be affected.

I think if a bank uses this method, this might make the bank have a very high bankruptcy risk because at the moment cryptocurrency like bitcoin is already unreliable because the price of bitcoin in 2 years cannot return to high prices.

Venezuela look want to adopt bitcoin in their country, we have support it to get bitcoin become legal there. many advantage with adopt bitcoin as legal transaction in some country, venezuela have try for accepting bitcoin and altcoin to increase their economic crisis in his country, I think one year later bitcoin become legal there.

Each and every asset holds a certain amount of risk associated with it. Central banks around the world holds foreign currency (Forex) as well as treasury bonds from their own government and the foreign nations. These assets are also not risk free (some of the countries have previously defaulted on the interest payments, and the one that comes to my mind right now is Argentina).

The more the risk they take, the chances of profit will also be higher. For example, a few years back the Russian central bank made the decision to sell all of their US treasury bonds and used the revenue that resulted from this sale to purchase gold bars. The gold holding by the Russian central bank went up from 3% of their overall reserves a few years ago to 19.6% in 2019. And remember that the gold prices went up by 20% this year.

Even if the country's central bank hold stash of cryptocurrencies it won't save the nation from financial crisis and starvation. The collapse of their economy is out of control, holding Bitcoin thus not guarantee profit in the future if a certain country rely on cryptocurrencies worst thing can happen. It is unfotunate for Venezuelan to suffer like this, cant Imagine an Billion dollar oil producing nation plummet economically.

Venezuela suffers from American economic sanctions. And because Venezuela is not as powerful as North Korea and Iran they simply cannot stop American bullying. On the other hand, the USA is doing this because Venezuela since the past has always been against its policies. And as we know, the USA always flexes its muscles a lot especially when they felt threatened in side the western hemisphere.

Venezuela is one of the country that experience hyper inflation, there residents migrated to other near countries due to the economic problem. The reason why the government of Venezuela are now holding bitcoin is because it can fix an economic issues.

In what way can it fix the economy problem is what I am still looking at, even if they make investment in bitcoin, and the value grows so high to the level where they will have so much money, I don’t think that can still solve the economic system. Before bitcoin can do anything to assist their economy, they must first of all deal with their government operation which to me, I think is very bad and porous.

I think instead of bitcoin alone, they need to change their entire system to full decentralized system except their economy, even the way they run their government needs to be fully decentralized so that they can have a very transparent system for their citizen to make a meaningful contribution, and I think one of the reason why they are failing is actually bad leadership.

The problem is the efficiency required for that oil to be sold at profit.  The holding of crypto or any other type of money only has the purpose of serving industry and the economy in facilitating productive and profitable enterprise.
   Crypto could be an aid in this country if it were done properly but also thoroughly and consistently.   A sinking ship cannot be saved by stepping on the leak and hoping for the best.  This is why in democracy we have to embrace change even when your party loses power for that moment.   The people of a country should embrace that change to a system can be the best way forward in that it removes mistakes made in the previous administration.    So long as the reform and change of policy, systems and process is ongoing and regularly submitted to the people then there is a chance that even in our flawed way of governing power it is far superior to staying with a never ending dictatorship which will never admit any mistakes or remove problems properly.
   Madro must leave no matter how amazing he might think himself, for these reasons.   The mistakes and problem inherit in Venezuela must be changed, it will benefit all at this stage.  Whatever is obstructing their business has to be altered, it may not even be clear what that problem is exactly.   Some problems are perfectly natural and nobodys fault, they have the largest oil reserves but this oil is very 'dirty' sour sulphur filled oil that cannot be used directly but must be heavily refined.    That work must be done ASAP so the country and its people can benefit from their natural wealth and they can move on from the past failure.
  If Madro loves his country and his people regardless of blame he must accept change is a positive now for Venezuela and he should step aside, surely he can do a deal to retire in peace for the good of all.

http://www.differencebetween.net/science/difference-between-sweet-and-sour-crude/

Other central banks could also be holding several cryptocurrencies in them. From there, we could see that even the they could see the potential cryptomarket has to offer, and its possibility to compete with fiat in the future. For me, it's a good one since while these news spread out to the generwl public, they inform those who does not know about crypto, or at least introduce to them the word, and let their curiosity drive them to research and hopefully invest to cryptocurrencies, which would be good for all.

Venezuela have build restart their economic with cryptocurrency, after failed down and get economic crisis Venezuela want to build cryptocurrency become their payment transaction, now Venezuela's central bank are holding cryptocurrenct than have hold money with have inflation there, money value in Venezuela have drop and many people have pay for higher amount to buy something in Venezuela.

when banks in a country have started to hold bitcoin owned it can be a threat and huge profits for them, the threat is when the price of bitcoin falls then surely banks will get a lot of losses while for profits can be obtained when bitcoin prices rise then the bank will be very lucky.

This is what experts are saying, time will come that there is a country who will seek for help with cryptocurrency, good thing the Venezuela government has come up with this solution as their money really fluctuates, so they need to check all things that will recover their nation, or else their country will be totally worth less.

This is truly an extraordinary step for Venezuela. where they dare to hold bitcoin, of course there is a risk that if prices plummet down, they will have to do a reset first, and make a decision that they believe in bitcoin and make a profit.

Obviously with each and every investment asset there is a certain amount of risk associated with them. And the amount of risk can vary from asset to asset. There are very low risk assets such as gold and the US treasury bonds and normally the central banks will go after them. It is very unusual for the central banks to invest in extremely volatile and high risk assets such as Bitcoins. And I don't think that the governments will ever give permission for the central banks to invest in such an asset. There are practical and administerial complexities involved with such a step.

Their currency are losing its value... Is it their way to handle the crisis they're experiencing? In order for us to see whether it's a good decision or not, let's just see what wil happened Venezuela in the coming years. But I don't know whether to consider their act as a selfish one or not. A government holding crypto, will it do good to their citizens? Venezuela already suffering, and with crypto everything is not sure. What if the people would just suffer more? If Venezuela would hold crypto, what they have to do is to plan it very well for them not to lose the only thing they have

For me, its good news to some cryptocurrencies user, especially if you are trading bitcoin in the same country. Acceptance and legalization of bitcoin and another cryptocurrency are just we need to boost cryptos value because we know that when the demands increase, the price also increases, especially in this kind of industry. :)

Not surprising. They know their own currency right is in a really bad state and is definetly not fit as a currency to be used.

I hope they aren't looking to BTC as just a bandaid fix. Hold it for a couple years before they fix their economy and then ban/eliminate BTC and force people to use their own currency again.

This could be the first possible bitcoin powered economy and this could be huge news if Venezuela works with the crypto-currency to find a permanent solution.

If this issue is true then it will turn very bad for Venezuela because they are already in crisis, I don't know how they could take this type of decision whereas the cryptocurrency is not going well and it has a lot of volatility, Cryptocurrency is not a solution for their crisis and I think it would turn another disaster very soon, Since they are in this crisis due to American imposition on various types of import and export, so within this situation, Holding cryptocurrency or Bitcoin is not a good decision at all, not only that but also the USA government is against this cryptocurrency so they could more imposition on Venezuela, overall situation is not suitable to them regarding the cryptocurrency.

The Venezuelan government holds Cryptocurrency because their country is in a state of decline so they want to protect their country's assets with Crypto. I totally agree with the attitude The Venezuelan Government dares to make such a decision. Hope other countries take the same action.

Venezuela experienced an economic crisis which caused the Bolivar currency to fall. high inflation results in their economy in a bad state. and to get out of this problem they switched to using bitcoin. they use bitcoin for everyday transactions like buying plane tickets. now they rely on bitcoin to survive. and I also heard that the government of Venezuela will issue its own digital currency. this proves cryptocurrency can be a solution when an economic crisis occurs. When more people buy bitcoin then of course this will have a positive impact on the bitcoin market.

The government took that action because it has no more options, the Central Bank of Venezuela has no liquidity, the lack of cash is an acute problem, the Bs.S is handled and the government's policies are prohibited from the US dollar, without However, in the Capital of the Country they manage dollars, what they do is print inorganic money increasing inflation every day. Recently the government increased 750% of the basic salary, which, instead of fixing the economic situation worsens it, because much more speculation is generated.

The few people who know Bitcoin what they are doing at the moment are buying everything that can be done in Bitcoin, because they know very well that the value of their currency is very low, and on platforms such as localbitcoins.com the volumes are increasingly big.

Check:

Global Volume:

https://i.imgur.com/m6fP5Tx.png
Source: coin.dance (https://coin.dance/volume/localbitcoins)

And Volume in Bs.S:

https://i.imgur.com/cCEaZAi.png
Source: coin.dance (https://coin.dance/volume/localbitcoins/VES)

Where:

https://i.imgur.com/Q1GRpyG.png
Source:themoneyconverter.com (https://themoneyconverter.com/ES/VES/USD)

And Volume BTC:

https://i.imgur.com/UlNk1M3.png
Source: coin.dance (https://coin.dance/volume/localbitcoins/VES)

Taking into account these data, adoption has not yet been total, it represents only the part of the population that knows Bitcoin and the Crypto market, but the crisis has revealed today how to take refuge in this technology.

Already in Venezuela 3 ATMs have been set up:

1.- In San Antonio del Táchira (Táchira State)
2.- In Mérida (Mérida State)
3.-In Caracas (Capital)

Given these adoption rates, the government took the measure of accepting payments in Bitcoin and ETH cryptocurrencies to integrate it as possible reserves, it is a desperate measure to obtain money from the US blockade to pressure rulers to leave power and let the country arise.

This whole crisis brings to the Bitcoin market a growing demand that gradually eliminates the supply and the price of Bitcoin in the long term will be higher.

I really don't know what can really bring Venezuela out of present crisis but I am sure about one thing and that is if the central bank of Venezuela is holding bitcoin, which it most probably is, it is going to be one of the most stable and rich country in the near future. Anyone who will support and invest in bitcoin at the present moment will be among the wealthiest of future. I also believe, bitcoin is going to be the biggest savior for Venezuela.

It is good to know that some of the financial institutions are trusting and holding cryptocurrencies because it is a proof that cryptocurrency is a good asset to store the value of our money. I think that the other major banks do the same thing like the central bank in Venezuela because it gives them a safe haven for their money and also an opportunity to grow their cash.

Central Bank in Venezuela holds Cryptocurrency because their country is experiencing a monetary crisis, so the Venezuelan government will most likely adopt Bitcoin there. Many believe that the parties of the World Bank now also glance towards Cryptocurrency, they want to adopt Blockchain technology for banking.

First of all, these are just rumors. The central bank of Venezuela (El Banco Central de Venezuela) never admitted that they are holding any form of cryptocurrency. These rumors are just spread by some of the media outlets, and as of now, we don't have any confirmation regarding this. Even if they are holding any crypto, it is going to be in very low amounts, given the bad state of the Venezuelan economy.

It is true that Venezuela is currently going through a financial crisis and they are unable to import essential commodities due to a lack of foreign currency in their reserves. And Bitcoin is not an answer to their problem. What they are doing now is that they are trying to sell their gold reserves, to earn foreign currency. But one issue is that some of that reserve is stuck abroad and the government can't access it now.

It is a good thing because the Government of Venezuela are fully committed on cryptocurrency and no bad intentions on using it like controlling it, they are like Japan who sees bitcoin as a new light of hope that could bring back their country in good feet and save their country in poverty. In this kind of movement, I am getting my high hopes that bitcoin could really be the main currency we are going to use since fiat is too vulnerable.

Fiat is just a mere piece of paper that have its value because the Governent says it's have one.

Yes, but still cryptocurrency is not the answer to their financial crisis, still they should find ways for them to be able to stand out again and overcome this problem to their country, and this should be a lesson that they should learned on their part. Crypto is always an opportunity, but I doubt if this can solve their issues, as we are talking about large sum of money. They should borrow in some countries to start again.

There is nothing like rumors in this world. If there is smoke then that means there was fire too. Rumors have not hundred percent reality but they contain bits of truth to some extent. Just because common people does not pay good attention to bitcoin does not mean the authorities and government people are also sleeping. Bitcoin is a way too important for surviving in coming days.

if any country holding cryptocurrency in their assets , i think it is smart action from them.they now potency in future when cryptocurrency already totally developted .at this time its true too many drama in crypto market, but it does not mean we have bad future for it.bitcoin or cryptocurrency was expected could be the solution when fiat have no value again if compared with goods.inflation going crazy and no one prevent it except we invest our money in crypto.

That was too hard to decide investing all our savings with crypto, I think Venezuela's government is more devoted with crypto in which legalizing it probably helped their people recover from poverty. How I wish other county specially most parts in asia would have positive mindsets over bitcoin and all aspects related to cryptocurrency, so that it will generate good outcome. Eliminating some discrepancies of fiat currency will soon be corrected and posible that all mode of payment system will be diverted using cashless spending.

I find what the Venezuelan government is doing to be very confusing,  in the height of their economic problems, the people decided to mine bitcoins and other cryptos in a bid to escape poverty mainly because they had access to cheap electricity and the government forbade and made cryptocurrencies illegal and then they proceeded to make their crypto which failed massively and now this.

The government is experiment with anything they can do to revive the economy, the politicians ruined the country and i have not seen 100% inflation in my life time and when Venezuela achieved that feat i was god smacked to know how a corrupt government can ruin a country completely, their Petro was a complete failure and you cannot create currency after currency and expect to overcome inflation ;D .

Ofcourse it has a good effect on the market. As economic recession continuously happening in Venezuela, Venezuela bolìvar value gradually decreasing. Venezuela citizens are suffering to even have their basic necessities as buying one is as though sacrificing the whole day without eating any. Venezuela government starts to recognize bitcoin's value, and with that the bitcoin's demand grows that it could have a huge effect in the market. So, it isn't bad 'cause it does help cryptocurrency market to grow.

Out of every rumor actually comes the truth, yes people do formulate things bit not when many people have said something about it, and I remember that when Facebook Libra coin was actually on their project to be released, there were rumors that they had the plan to do so long before they even came to make statement about it, but I never paid attention to it and also called it rumor until the truth actually came out too.

Unlike what the other fellow mate said, the reason why Venezuela will even think of investing in the bitcoin is to salvage their economy and understanding the volatile nature of bitcoin, and looking at the positive side of it, I think that they will actually invest much in it which is the only way they can get enough money out of their investment for economic purpose.