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Venezuelan President Announces Encryption Currency Issue Plan to End Crisis through Crude Oil

Venezuelan President Nicolas Maduro announced a new cryptocurrency program aimed at countering the significant devaluation of the country's currency, Bolivarian, and the resulting economic crisis.

According to Reuters, Maduro announced the news on a Christmas special television program, claiming that the Venezuelan government will launch a cryptocurrency supported by commodity reserves, including crude oil. President Maduro, who took office in 2013, has been busy with the deteriorating socio-economic crisis in the country and has also become the object of allegations of dictatorships. According to a statement released on the Venezuelan government's official website , cryptocurrencies will help the country overcome the financial blockade.

The statement is as follows (rough translation):

"To promote monetary sovereignty Venezuela will create a cryptocurrency that will help overcome the financial blockade and thus move towards a new form of international financing for national economic and social development."

However, there are also Venezuelan government leaders who refute this view. Reuters quoted council member Angel Alvarado as saying "untrustworthy".

"Maduro has become a clown," Alvarado told the media.

According to the report of "Commercial Insider," the move came as the Venezuelan government issued a Bolivarian banknote of 100,000 denomination. The value of Bolivarians against the U.S. dollar plummeted in a few weeks. As the New York Times reported yesterday, the rapid inflation in Bolivar has led to the rise in consumer prices in the region, aggravating the economic crisis in Venezuela.

This is also noteworthy development. In September, Babbitt reported that some Venezuelan residents turned to bitcoin mining in order to survive because the low electricity tariffs in the region made mining a kind of mine in the area Attractive choice.

According to an official statement, the Venezuelan government intends to establish a "blockchain observatory" that will be affiliated with the university's Department of Educational Science and Technology.