The first country to hold a part of its reserves in Bitcoin or any other cryptocurrency could be Venezuela according to a Bloomberg article published Sept 26.
The South American nation is currently facing economic sanctions from the United States, meaning that they can not easily access the international payment systems for global trade.
However, sources close to the matter revealed that the state-run oil and gas company, Petroleos de Venezuela SA (PDVSA) had told the Venezuelan Central Bank that adopting cryptocurrencies could save the nation from the current situation.
PDVSA having run into a difficulty to complete transactions with their international clients has proposed that they deposit Bitcoin and Ether to the Venezuelan central bank which will, in turn, handle international payments on behalf of the oil and gas company.
Also aside from the payments, the sources disclosed that central bank officials are studying proposals that would see cryptos count toward the country’s international reserves, which currently sit at a 30-year low of $7.9 billion.
Although the sources did not reveal the extent of progress that the central bank has made towards the potential adoption of cryptos for its reserve, it mentioned that PDVSA, the entity seeking to deposit Bitcoin and Ether with the national bank already holds a sizeable volume of the assets.
However, the rigorous process of having to pass their crypto through an exchange before they can use it to pay clients prompted to request for the central bank to hold the cryptos and pay on their behalf.
Meanwhile, Venezuela isn’t the only country where cryptocurrencies are currently being used to skirt economic sanctions. Earlier this month, we reported that over 10,000 people in sanctioned Cuba are using Bitcoin for international trades.