Venezuela's central bank is holding Cryptocurrency!

[Finestream]

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.

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
Venezuela Readies Central Bank Crypto Payments

Venezuela's Central Bank Indicates Plans to Stockpile Bitcoin

[STT]

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:

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.

[alyssa85]

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.
  

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.

[audaciousbeing]

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.

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.

[STT]

yuan or roubles - but those currencies are unstable and keep weakening

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.

[Harlot]

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.

[Sithara007]

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.

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
Venezuela Readies Central Bank Crypto Payments

Venezuela's Central Bank Indicates Plans to Stockpile Bitcoin

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.

[cutesgirl]

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.

[Periodik]

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.

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.

[btc78]

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.

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)

[el kaka22]

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.

[juperos]

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.

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.

[Harlot]

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.

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.

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.

[Sithara007]

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.

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.

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.

[Faxmate]

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.

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.

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.

[adzino]

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.

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!

[Mumbeeptind1963]

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.

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.

[cryptoknightt]

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.

[asus09]

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.

[Sithara007]

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.

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.