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<ul> 
 <li aria-level="1">Countries like El Salvador and the U.S. explore Bitcoin reserves; Venezuela considers similar economic diversification strategies.</li> 
 <li aria-level="1">Venezuelan economists express concerns about practical implementation challenges in adopting Bitcoin due to economic instability.</li> 
</ul> 
María Corina Machado, a Venezuelan opposition leader, has proposed that Bitcoin (BTC) be integrated as a national reserve asset in Venezuela. This proposal aligns with a growing global trend where nations are considering cryptocurrencies as part of their financial strategy. 
In a <a href="https://x.com/bitcoinmagazine/status/1831730496373477548">recent discourse</a> with Alex Gladstein, Chief Strategy Officer at the Human Rights Foundation, Venezuelan opposition leader María Corina Machado discussed Bitcoin’s role for citizens in Venezuela’s hyperinflationary economy. 
The inflation rate reached 1.7 million percent in 2018, which severely devalued the national currency, the bolivar, and eradicated the economic stability of many Venezuelans. 
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 BREAKING: <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f1fb-1f1ea.png" alt="🇻🇪" class="wp-smiley" style="height: 1em; max-height: 1em;"> Leader of Venezuelan Opposition María Corina Machado proposes using <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> as a national reserve asset. 
 Bitcoin is a "lifeline" and "vital means of resistance" <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f64c.png" alt="🙌" class="wp-smiley" style="height: 1em; max-height: 1em;"> <a href="https://t.co/5R1q7zVHyy">pic.twitter.com/5R1q7zVHyy</a> 
 — Bitcoin Magazine (@BitcoinMagazine) <a href="https://twitter.com/BitcoinMagazine/status/1831730496373477548?ref_src=twsrc%5Etfw">September 5, 2024</a>
</blockquote> 
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
Machado described Bitcoin as a tool enabling Venezuelans to evade restrictive government-imposed exchange rates, thereby providing an alternative financial pathway.&nbsp; 
<blockquote>
 “Bitcoin allows many of our people to bypass government-imposed exchange rates,” she asserted. 
</blockquote> 
As we have <a href="https://www.ethnews.com/u-s-urges-investors-to-tap-into-el-salvadors-bitcoin-boosted-economy/">reported on ETHNews</a>, internationally, countries like El Salvador have already adopted Bitcoin as a reserve asset, with President Nayib Bukele initiating government purchases of Bitcoin in 2021. In the United States, Senator Cinthya Lummis introduced legislation to add Bitcoin to national reserves, a plan supported by former President Donald Trump as part of his campaign. 
The <a href="https://www.ethnews.com/el-salvadors-economic-boom-the-role-of-bitcoin-in-a-4-growth-forecast/">potential benefits</a> of incorporating Bitcoin into Venezuela’s reserves include diversifying the national reserve assets and potentially stabilizing the economy. 
However, the country faces significant challenges that may complicate the implementation of such a strategy. Venezuela’s economy is currently marred by high inflation and various macroeconomic imbalances. 
<h2 id="b-three-venezuelan-economists-were-consulted-to-evaluate-the-viability-of-machado-s-proposal-b">Three Venezuelan economists were consulted to evaluate the viability of Machado’s proposal&nbsp;</h2> 
<img decoding="async" class="aligncenter size-full wp-image-93916" src="https://www.ethnews.com/wp-content/uploads/2024/09/An-image-illustrating-Three-Venezuelan-economists-were-consulted-to-evaluate-the-viability-of-Machados-proposal.-Three-economists-are-seated-in-a-p.webp" alt="" width="1792" height="1024"> 
Asdrúbal Oliveros, director at Ecoanalítica; Aarón Olmos, cryptocurrency expert and professor at the Instituto de Estudios Superiores de Administración (IESA); and Francisco Rodríguez, former chief economist at Torino Capital, all provided insights. They acknowledged the innovative nature of the proposal but pointed out the practical difficulties in its implementation. 
<blockquote>
 It is true that by having reserves in cash, gold or triple-A investment grade bonds the returns are probably very low, but that element of security is much more powerful than the profitability that bitcoin can bring you. 
 Economist Asdrúbal Oliveros.
</blockquote> 
The economists highlighted several obstacles, including the need for comprehensive regulation of cryptocurrencies, strengthening of institutional frameworks, and managing Bitcoin’s price volatility. They noted that while the proposal is innovative, the current Venezuelan context presents formidable barriers that could hinder the practical application of such a policy. 
The integration of Bitcoin into Venezuela’s national reserves is a proposal that aligns with global trends but faces hurdles in the context of <a href="https://www.ethnews.com/why-venezuelans-are-betting-big-on-bitcoin-amid-economic-collapse/">Venezuela’s current economic conditions</a>. The success of such an initiative would require careful planning, robust regulatory frameworks, and substantial economic stabilization. 
The post <a href="https://www.ethnews.com/could-venezuela-become-the-next-bitcoin-paradise-inside-the-controversial-proposal/">Could Venezuela Become the Next Bitcoin Paradise? Inside the Controversial Proposal!</a> appeared first on <a href="https://www.ethnews.com">ETHNews</a>.

Could Venezuela Become the Next Bitcoin Paradise? Inside the Controversial Proposal!

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