Bitcoin Could Be Venezuela’s Future Reserve Asset, Says Opposition Leader María Corina Machado

• Machado sees Bitcoin as a vital tool for Venezuelans to protect assets from the regime’s control during economic instability.
• Bitcoin offers Venezuelans a lifeline, bypassing government-imposed exchange rates and helping them survive hyperinflation.
• Incorporating Bitcoin into Venezuela’s national reserves could help restore financial stability in a post-Maduro government.

María Corina Machado, leader of Venezuela’s opposition, recently made a proposal to incorporate Bitcoin as a national reserve asset. This comes as Venezuela is struggling with the devastating impact of economic mismanagement under the Chavez and Maduro regimes. Bitcoin, she suggests, could play a crucial role in stabilizing the country’s financial future.

A Broken Economy: The Destruction of the Bolivar

The Venezuelan Bolivar has been in a state of collapse for years. Once stable, it has lost 14 zeros due to inflation under Chavez and Maduro’s leadership. Notably, in 2018, inflation reached an incredible 1.7 million percent, with prices doubling every four days. 

Since 2016, inflation has cumulatively exceeded 8 million percent, pushing millions of Venezuelans to flee the country. Despite Venezuela’s vast oil reserves and an oil price boom, the currency’s collapse has continued, turning a once functioning economy into a financial catastrophe.

Bitcoin: A Lifeline for Venezuelans

Many Venezuelans have turned to Bitcoin during this period of hyperinflation, using it as a tool to safeguard their wealth and finance their escape from the country. Bitcoin’s decentralized nature allows Venezuelans to bypass government-imposed exchange rates, making it an essential lifeline. 

According to Machado, Bitcoin has evolved into a “vital means of resistance,” allowing individuals to protect their assets from seizure and censorship by the regime. She highlighted the importance of the cryptocurrency in helping people survive and maintain some form of financial stability.

Vision for Bitcoin in Venezuela’s Future

Machado envisions Bitcoin playing a significant role in a future democratic Venezuela. She proposes that Bitcoin be included as part of Venezuela’s national reserves, helping to rebuild what the dictatorship has taken. 

In the past, Venezuela had substantial financial reserves, including gold, before they were plundered. The integration of Bitcoin, she argues, will be essential in restoring the country’s reserves and securing its financial future.