Venezuelan Opposition Leader Maria Machado Proposes Establishing a Bitcoin Reserve to counter Hyperinflation
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Loading... - Elke Christoph
- 10 Sep 2024
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Venezuelan Opposition Leader Maria Corina Machado has proposed the establishment of a Strategic Bitcoin Reserve as a response to the severe hyperinflation and currency devaluation that have plagued the country, which has led to the removal of 14 zeros from the value of Venezuela's local currency. Machado's proposal echoes the approach taken by El Salvador, which has already embraced Bitcoin as a national reserve and regularly acquires the cryptocurrency.
Machado, who continues to contest the legitimacy of President Nicolás Maduro, sees the creation of a national Bitcoin reserve as a crucial measure to stabilize the Venezuelan economy. In a recent interview with Alex Gladstein, the Chief Strategy Officer of the Human Rights Foundation, Machado expressed her concerns about the ongoing economic decline in Venezuela, attributing it to the exploitation of the nation's resources by the current regime and the relentless devaluation of the bolivar.
She argues that a strategic reserve in Bitcoin could help mitigate the economic crisis by providing a hedge against hyperinflation. Venezuelans have increasingly turned to Bitcoin as a way to preserve their wealth and protect themselves from the rapid price increases of essential goods, which can double in cost every two days. Machado believes that Bitcoin's decentralized nature could help restore Venezuela's financial independence and protect the nation's wealth from authoritarian control.
Her proposal aligns with the growing trend among Venezuelans to adopt Bitcoin as a safeguard against the instability of their national currency and as a tool to regain economic freedom amidst the country's ongoing financial turmoil.
