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A Central Bank For Cryptocurrencies To Be Launched In Venezuela

Venezuela is preparing to launch a Central Bank exclusively for cryptocurrencies in order to facilitate linking of the national currency bolivar with Petro, the state-owned digital currency. The Venezuelan Constitution is undergoing changes suggested by the National Constituent Assembly under the supervision of a court higher than the country’s Supreme Court.

The information about the initiative was provided by Hermann Escarra, a member of the National Constituent Assembly who was also described as “one of the most influential members of the assembly” by Reuters, a local media outlet.  

A draft of all the proposed changes is set to be presented before the board of the constituent assembly in 35 days. What changes will the draft precisely contain, remains unanswered as the governing officials only acknowledged the move. However, Escarra came forward to inform the press about the creation of a central bank for the digital currencies. He stated,

“There will be the Central Bank with its functions in exchange, monetary and financial policy and the Central Bank will be incorporated.”

The changes also include Petro, Venezuela’s controversial oil- backed cryptocurrency launched earlier this year in an attempt to deal with the economic sanction imposed on the country by the United States. An e-court above than the National Supreme Court too forms a part of all the amends constituting the draft.  

Escarra also told the local news outlets about how Venezuelan companies will have greater and easier access to the foreign investments after changes to the constitution are made. The companies from the oil sector will have the upper hand in the current scenario.

The move is in succession to the announcement of another fiat currency called Bolivar Soberano (which means ‘Sovereign Bolivar’ in English) by the Venezuelan Prime Minister Nicolas Maduro. The steps taken by the government are presumably measures to take down the ever increasing inflation rate plaguing the condition of the Venezuelan economy.

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