{"id":278676,"date":"2020-12-01T07:11:47","date_gmt":"2020-12-01T12:11:47","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=278676"},"modified":"2023-06-20T15:00:19","modified_gmt":"2023-06-20T15:00:19","slug":"venezuelas-army-begins-bitcoin-mining-to-try-and-stay-afloat","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/venezuelas-army-begins-bitcoin-mining-to-try-and-stay-afloat","title":{"rendered":"Venezuela\u2019s Army Begins Bitcoin Mining To Try And Stay Afloat"},"content":{"rendered":"

Cryptocurrencies continue to be the crutch that the Nicol\u00e1s Maduro regime rests on within Venezuela in order to try and keep the nation economically solvent.<\/p>\n

A New Crypto Mining Center For Venezuelan Military<\/h2>\n

The Venezuelan Army had its Engineering Brigade officially inaugurate<\/a> a new \u201cDigital Assets Production Center of the Bolivarian Army Of Venezuela,\u201d doing so through Instagram of all things. The video in question makes it clear that this center is home to ASIC mining equipment, the types used to mine in proof-of-work algorithms.<\/p>\n

General Lenin Herrera had presented this new mining operation. This entire mining operation\u2019s goal, in turn, is to create a more self-sustainable, stronger military force within the Bolivarian Army. In the statement, he detailed how these mining centers would generate sources of income that would be unblockable.<\/p>\n

This would serve as an alternative to the normal financial systems which, according to Herrera, had been controlled and blocked off from the country by \u201ccolonialist interests.\u201d This, of course, is in reference to the US, which has leveled severe sanctions against many entities that are associated with the Maduro regime.<\/p>\n

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Turning To Crypto To Combat Inflation<\/h2>\n

Venezuela has suffered some monumental inflation rates in recent months thanks to a combination of political turmoil, crashing oil prices, and the COVID-19 pandemic smashing into it on top of that.<\/p>\n

It was back in September when Maduro first proposed an \u201cAnti-Blocks Law.\u201d This legal body was developed and proposed the use of cryptocurrencies in order to evade sanctions put against the country. This, in turn, would allow Venezuela to gain access to financing gained from various international allies.<\/p>\n

The Maduro regime isn\u2019t new to this game, however. In fact, the country boasts the title of launching the very first central bank digital currency in the world, the Petro<\/a>. The coin itself is dubious at best, with no clear way to certifiably prove that it\u2019s backed the way they claim to be. Even so, the coin has seen some marginal success, but it isn\u2019t anything in the grand scheme of things.<\/p>\n

US Keeping Close Watch<\/h2>\n

The US military has opted to keep a keen eye on the crypto activities of Venezuela. Admiral Craig Stephan Faller had gone as far as to claim that Maduro\u2019s crypto usage was linked to terrorism and drug trafficking. The Admiral was quick to state that the armed forces were keeping a keen eye on all those operations, as well.<\/p>\n

Venezuela is in quite a bind, and time will tell how this matter will play out. With any luck, everything will work out for the best, but in this day and age, that\u2019s as likely to happen as finding the beginning of a rainbow.<\/p>\n

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