Venezuela will create a central bank to control cryptocurrency

The National Constituent Assembly is preparing for the reform of the country’s Constitution. It includes the development of the central bank for cryptocurrency. This step is a consequence of the efforts of the Venezuelan government on the binding of a new currency to oil.

Herman Escarr, a representative of the National Constituent Assembly of Venezuela, in an interview with Reuters noted: «A central bank will be created with classical functions in the form of exchange, as well as monetary and financial policies.»

It is known that the draft Constitutional Change will be submitted within 35 days and sent to the Constituent Assembly.

Last year, Maduro called on the Constituent Assembly to develop a new Constitution of Venezuela instead of the 1999 Constitution, which is the work of its predecessor — Hugo Chávez. With its help, power is going to make adjustments related to the transition to cryptocurrency.

Earlier this year, the Venezuelan government launched a digital currency called El Petro, which Nicolas Maduro called the cryptocompon supported by the country’s oil reserves. The Venezuela Parliament met her with indignation. In many ways, the reason is that work on cryptocurrency, including the collection of funds and presets, was held in the mode of classification. How much money was actually assembled for the period of crowdfunding — it is unknown, the data is not supported by any evidence.

In addition, global experts in cryptocurrency stated that El Petro could not be effective due to lack of confidence in the government and improper management of the existing national currency of the country.

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