The U.S. government has succeeded in lobbying the bank of England to block Nicholas Maduro from accessing the financial reserve of Venezuela. Access to the reserve is considered key to the pending power struggle in the country.
Blocking Maduro’s Access To Venezuela’s Foreign Reserve
Venezuela has a foreign reserve of about $8 billion and $1.2 billion of it that is stored with the bank of England has become a contention of the power struggle in the country as Maduro is locked in power struggle with Juan Guaido. The efforts of Nicholas Maduro to access the funds is considered as a possible catalyst to aid his advantage in the power struggle.
To deny Maduro access to the reserve, the United State’s office, led by the Secretary of States of the United States, Mike Pompeo lobbied the bank of England to deny Maduro access to the funds. Also, the U.S. and U.K. governments are making a move to shuffle Venezuelan assets stored overseas to Guaido.
The Venezuelan Power Struggle
The power struggle stems from the act of the U.K., and the U.S. recognizing Juan Guaido, the National Assembly leader, as the legitimate president of Venezuela on Wednesday. Also, the E.U. also stated that it would join the U.S. and U.K. in recognizing Guaido as the president unless a credible presidential election is called for within eight days.
Nicholas Maduro and Cryptocurrency
Nicholas Maduro, the ousted president of Venezuela, has been lauded as a dictator and also a poor administrator that has made the economy of the country to crumble. Over the years there has been an increase of hyperinflation in the country due to economic sanctions and mal-administration.
To salvage the decaying economy, Nicholas Maduro the former president of the country introduced the first national cryptocurrency in the world, the Petro. This was backed by the oil reserve of the country.
Many controversies trailed the project as it was considered to be a failure from the outset by economists, crypto enthusiasts, U.S., and the IMF. The launch of the cryptocurrency was faced with sanctions from the United States and was declared illegal. The introduction of petro which lacked elements of an organisation with different incoherent information on it was more or less a failure.
Maduro’s solution to the economic situation of the country devised in Petro; the new president, Guiado does not favour a national cryptocurrency. Some other countries are also making efforts to introduce national cryptos to salvage their economy from hyperinflation and sanctions.