Sunday, June 16, 2019

Venezuela Plans To Block International Access To Bank Accounts

Another day, another abuse from central governments against people that needs of centralized banking services to manage their money to make transactions. This time the government of Venezuela has outed a press release by SUDEBAN (the national bank governor institution) that dictates that the banks must block access to accounts that have been managed from outside the country. This measure is taken in a time of great inflation rates and after the government made a controversial change of the national currency, changing their bolivar to another cryptocurrency pegged coin: the sovereign bolivar.

Venezuela is a country that is being ravaged by poverty and hyperinflation. Because of this, there has been a massive exodus of Venezuelans to other countries searching for better work and living conditions. This has made the Venezuelan economy a country that is being in part maintained by the remittances that families send to their loved ones still inside the country. These remittances are often made through a third-party broker that is outside the country and has bank accounts inside the country, and exchanges the foreign currency by taking a fee.

The government wants to thwart these kinds of brokers by blocking their access to national bank accounts with this new legislation that will be put in place in the near future. Now the banks will log the IP address of every customer to determine if the account is being accessed from outside the country and block the ones that are. Venezuelans that travel often will need to notify the government about their whereabouts and the date of the travel and return to access their accounts.

This is clearly another opportunity for the massification of cryptocurrencies. The Venezuelan government wants to centralize the remittance business by using their own exchanges with hefty rates to take a hefty fee from remittances. Using cryptocurrencies would be ideal and would shift the power to the families of the Venezuelans that send the money outside the country.

We have talked with “Ricardo”, a broker that works by exchanging local currency and sending remittances to Venezuela in Chile, a country that has been chosen by many Venezuelans to settle in, and he thinks that the rights of the Venezuelans that are outside the country are being run by the government, and he is also worried about his personal funds, and the possibility of it being taken by the government.

This kind of action remarks the need for a decentralized peer 2 peer transactional system, like the one that cryptocurrencies offer. Another clear case of use for cryptocurrencies in favor of the people.

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