Venezuela’s Bitcoin reserve plan faces political hurdles

Venezuelan opposition leader María Corina Machado has proposed adding Bitcoin (CRYPTO:BTC) to the country’s national reserves as a potential way to stabilise its troubled economy. 

She pointed out that Bitcoin became a "lifeline" for many Venezuelans during the hyperinflation crisis, helping them protect their wealth and escape economic hardships. 

Her plan suggests that including Bitcoin in the country's reserves could be a step toward financial stability. 

However, this proposal faces major hurdles due to the country’s ongoing political turmoil. 

Many observers question whether it’s a realistic solution or simply political maneuvering. 

"The statement seems legitimate, but it might be influenced by Bitcoin’s growing prominence in global discussions, especially with the 2024 U.S. elections," said Javier Bastardo, Bitfinex Bitcoin ambassador. 

He also raised concerns that Bitcoin could be used as a political tool to attract attention from the crypto community. 

Despite the scepticism, some in Venezuela’s crypto community believe Bitcoin could offer significant benefits. 

"Bitcoin would help diversify and modernise Venezuela’s reserves since it operates outside government or banking control," said Ernesto Contreras, founder of Unalivio, a crypto payments platform. 

Anibal Garrido, a Bitcoin miner in Venezuela, agreed, saying that adding Bitcoin to the national treasury "would be favorable given its potential to increase in value over time." 

Still, many experts insist that the country’s political instability must be addressed first. 

"Political stability is key before any Bitcoin initiative can work," said Cristobal García, former growth manager at Buenbit, a Latin American exchange. 

Economist Daniel Arraez added, "Bitcoin could help restore trust in public institutions, but only if the political issues are dealt with." 

While Bitcoin might offer an opportunity for Venezuela, financial experts stress that solving the country’s deep-rooted economic problems and political challenges is essential before any real progress can be made. 

"Bitcoin isn’t a miracle cure," Garrido cautioned, emphasising the need for practical reforms alongside any cryptocurrency initiatives. 

At press time, the Bitcoin (BTC) price was $61,940.52.