Monday, July 15, 2019

Venezuelan Government Launches Official Cryptocurrency Service Allowing Crypto Transfers

The Venezuelan government has just launched a new cryptocurrency service officially in its country that would allow its citizens to receive Bitcoin (BTC) and Litecoin (LTC) from anywhere in the world.

Cryptocurrency Still Saving the Day

The implosion of Venezuelan economy last year flooded international news and social media channels, with circulating images of bales of Bolivars being used to buy a roll of tissue paper particularly catching the eye. Venezuela’s fiat currency reached an alarming nadir last year, as the government struggled to win a downhill battle it had been struggling with for half a decade.  The government of Venezuela led by President Maduro promptly launched its official cryptocurrency last year (the Petro) to save palliate its struggling economy.

Launched in November, the government ordered that travel passports be sold at the rate of two Petros ($115) which was equal to about 7200 Bolivars: a fee more than four times the mean of the country’s wages. With a large fee slapped on passports to prevent citizens from escaping the economic hardship in the country, President Maduro has done his best to ensure its citizens embrace digital currencies instead as a way of saving the economy.

As a testament to its commitment to digital assets, the Superintendencia Nacional de Criptoactivos y Actividades Conexas (Sunacrip) – translated to English, Superintendence of Crypto assets and Related Activities, was created as one of the first official cryptocurrency regulator particular to a country.

Receiving BTC and LTC

Sunacrip, the crypto regulating arm of the government has now released an official announcement revealing the launch of a new service called Patria that would allow Venezuelan citizens who are of legal age to receive cryptocurrencies, Bitcoin (BTC) and Litecoin (LTC)particularly from anywhere in the world.  Since the establishment of Sunacrip by the government, all businesses affiliated with cryptocurrencies in the country have been mandated to register with Sunacrip and abide by its regulations.

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The new service offered by Sunacrip is lodged under decree 3196 of 8 December 2017, the exact decree that the first initiative of an official national cryptocurrency was established under. Patria has some stringent requirements however which might not encourage a select few. Some of the stringent terms of service  read:

  • The recipient must be “a natural person, of legal age, domiciled in the territory of the Bolivarian Republic of Venezuela.”
  • The recipient “may receive crypto assets up to a value equivalent in foreign currency to ten Petros (10 PTR) per month.” Sunacrip “may exceptionally authorize an amount higher than the one referred to in this article, upon reasoned request of the recipient, up to a maximum of the equivalent value in foreign currency to fifty Petros (50 PTR).”
  • The sender must pay a commission “up to a maximum amount of fifteen percent (15%), calculated on the total of the remittance, in Bolivars, and a minimum amount equivalent to 0.25 Euros per transaction.”
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With the insertion of fee and taxes amongst other stipulations, it remains to be seen if Patria is patronized by Venezuelan crypto users.

Adedamola Bada
I'm Damola, a computer engineer from Obafemi Awolowo University. A crypto enthusiast, marketer, and writer who is seeking to achieve career excellence through hard work and positive contribution to the organization that aspires for excellence. Contact me on [email protected]

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