Venezuela's central bank is holding Cryptocurrency!

[ecnalubma]

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.

[DaveWave]

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.

[GrayFullbuster]

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.

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.

[coinfinger]

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.

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.

[STT]

Billion dollar oil producing nation plummet economically.

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/

[blckhawk]

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.

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.

[asus09]

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.

[Google+]

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.

[Edraket31]

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.

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.

[haidil]

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 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.

[Sithara007]

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.

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.

[Eclipse26]

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

[jakoylantern]

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.

[Kyraishi]

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.

[Murat]

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.

[riso2015]

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.

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.

[barabarian1]

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.

[LUCKMCFLY]

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:


Source: coin.dance

And Volume in Bs.S:


Source: coin.dance

Where:


Source:themoneyconverter.com

And Volume BTC:


Source: coin.dance

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.

[Ejanend]

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

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.

[meliodas]

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.