The Central Bank of Venezuela conducts internal tests to determine whether it can add cryptocurrencies to its international reserves. According to a Bloomberg report, it is mainly Bitcoin (BTC) and Ethereum (ETH).
The initiative was launched at the request of Petroleos de Venezuela SA (PDVSA), the state-owned oil and gas company. PDVSA wants the Venezuelan central bank to pay the company’s suppliers with the Bitcoin and Ethereum cryptocurrencies it owns.
The company itself would not be able to pass mandatory KYC checks on crypto exchanges in order to transact directly to the lenders. Therefore, the PDVSA want to interact with them through the country’s central bank, which will not register such problems.
Due to US sanctions, Petroleos de Venezuela SA has had difficulties in dealing with its customers and suppliers, as major banks have avoided opening business channels with the company. According to Bloomberg, it is unclear how PDVSA obtained the cryptocurrencies. Their value is also unknown.
Petro vs Bitcoin and Ethereum
From a practical point of view, unlike Petro, Bitcoin is globally accepted. Ethereum is the most important altcoin on the crypto market. It would be relatively easy for anyone to accept a payment made in these cryptocurrencies and immediately turn it into a fiat currency.
So far, Venezuela has shown an interest in using cryptocurrencies as a way of avoiding international sanctions. Instead of digital currencies, the Maduro government has opted to launch Petro, a cryptocurrency based on the country’s oil reserves. Since its launch in 2018, government officials have launched various platforms to stimulate Petro’s use, with limited success.
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