Critics claim that Venezuela’s President Maduro is considering using cryptocurrency to bypass recent sanctions imposed by the US government. According to Venezuelan crypto activists, Maduro and his regime are exploring various methods to avoid the sanctions.
Andrew Fierman, head of national security intelligence at Chainalysis, stated that regimes under sanctions typically seek ways to evade them, and the Venezuelan government has been attempting to do so through various means over the years.
The US recently re-imposed sanctions on Venezuela, including an oil and gold ban on May 31, due to the government’s failure to uphold democratic principles ahead of upcoming elections in July.
A report from the Wilson Center released in April, authored by Leopoldo López and Kristofer Doucette from Chainalysis, highlighted Venezuela’s history of using cryptocurrencies to bypass sanctions. The authors called on governments to enforce restrictions to prevent the Maduro regime from exploiting digital currencies.
President Maduro previously launched ‘Petro,’ a national oil-backed cryptocurrency in 2018, with the aim of revitalizing Venezuela’s struggling economy. However, the project was discontinued on January 15, 2024, as it failed to gain widespread adoption.
Critics warn that Venezuela’s use of digital currencies could facilitate illegal activities such as money laundering and corruption. They urge democratic governments to take action against Maduro’s attempts to exploit cryptocurrency for illicit purposes.
Similar to Venezuela, other autocratic leaders facing international sanctions, like those in Iran and Russia, have also turned to cryptocurrency to evade sanctions.
