Another Country is Thinking of Adding Bitcoin as a Reserve

On Thursday, María Corina Machado, a prominent Venezuelan opposition figure, revealed her plan to adopt Bitcoin as a national reserve asset.

This proposal echoes former US President Donald Trump’s recent suggestion of a national Bitcoin reserve.

In a discussion with Alex Gladstein from the Human Rights Foundation, Machado outlined how Bitcoin could be pivotal in addressing Venezuela’s deepening economic woes. She criticized the financial policies of former President Hugo Chávez and current President Nicolás Maduro, which she claims have led to the catastrophic devaluation of the Bolívar.

It was an honor to interview @MariaCorinaYA about such an important topic

The Chávistas completely destroyed Venezuela’s monetary system

Here she talks about how Bitcoin has been a tool of liberation and how, in the future, the country will rebuild its reserves with BTC 🇻🇪 https://t.co/SetvqE7lTp

— Alex Gladstein 🌋 ⚡ (@gladstein) September 5, 2024

Machado noted that Venezuela’s currency has significantly depreciated, with inflation skyrocketing to 1.7 million percent, causing prices for essentials to double nearly every two days. Since 2016, inflation has exceeded 8 million percent, driving millions to leave the country in search of stability.

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Machado highlighted how many Venezuelans are using Bitcoin to protect their assets amid hyperinflation. She views Bitcoin as essential for rebuilding Venezuela’s economy and supporting its poorest citizens. Furthermore, she believes Bitcoin donations are protected from government seizure, making the cryptocurrency a key part of her strategy for a peaceful transition.

While her proposal bears some resemblance to Trump’s idea of a national Bitcoin reserve to manage US debt, Machado’s plan is independently motivated by Venezuela’s unique economic challenges.

Alexander Stefanov