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Venezuelan army starts mining Bitcoins

Venezuelan army starts mining Bitcoins

The economic crisis in Venezuela and the international sanctions has created tension between the government and the Venezuelan people. The people are still learning to live under the current regime. The country’s socialist system has kept a grip on the economic, political, and foreign policy. The president used the exhausted all the state’s resources to push his authoritarianism further and has embezzled a lot of state funds. This has created a dire economic situation in the country and the citizens are only just looking for ways to support the economy and the military is taking major steps to do so.

The Venezuelan army has turned to cryptocurrency mining, specifically bitcoin to support their economy which has been experiencing crisis for a long period of time. Not the whole army is doing this, but just the Army’s engineering brigade. They launched a digital currency production center. They revealed this in an Instagram video explaining that the center has many ASIC mining equipment for creating unblock able income as they struggle to circumvent the US sanctions. The country’s local cryptocurrency regulatory body supports the mining center.

The Venezuelan army start mining

According to media outlets, the mining center was launched in November by the military engineers. The launch was headed by Lenin Herrera, who is also the Bolivarian Army General. Several members of the military accompanied him. In their Instagram video, the Brigade explained that the mining operations. They said that the purpose of this venture is to sustain and strengthen the army. The blockchain project was presented by the 61st Engineer Conditioning Brigade. About 26 legal norms Sunacrip, the new anti-blockade law of the country, and the civic-military alliance of the country support.

They also want to use this mining project as an alternative to their system which is strictly regulated and restricted by the US, which has leveled so many sanctions on the current regime. The country found itself in this position because oil prices have drastically dropped. And besides this, the country was also affected by the pandemic, consumed with several political upheavals. This has also caused the inflation rate of the country to reach very high levels. 

It was also reported in September that the president of Venezuela established a legal framework that suggests the use of cryptos to circumvent the sanctions and get access to financing from their foreign partners. These plans are not new to the regime. The administration of Maduro has gone to extremes in order to release and encourage their own digital currency, The crypto is called Petro, and they have recorded little success since its launch. The news reported that the center was the first of its kind ever created by the military.

The army also noted that the local mining center and the military miners will permit the live production of digital currency in order to facilitate the destruction of the fiat system which is all control by influential countries like the US which has affected the resident of the country.

At the same time, the crypto activities of Venezuela are closely being watched by the US army. According to Admiral Craig Stephen Faller, he thinks that Maduro’s adoption of local crypto. Is for drug trafficking and terrorism and that the army will continue looking at the activities closely. This new move is a noteworthy reversal for the armed forces of Venezuela who started out by seizing vehicles full of cryptocurrency mining rigs to use these rigs actively.

This move is a long shot to bring down the fiat system, given that the country’s own digital currency is not really performing well. 

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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