Many countries have moved to encrypt abandoning their fiat sovereign currencies for security against the looming economic crises. The country that has been at the forefront of this adoption is Venezuela because its economy is currently in tartar with high inflation and the weight is worthless.
Legislation to provide companies with the confidence to make transactions in criptos
Asamblea Nacional Constituyente or the National Constituent Assembly of Venezuela approved new legislation that provided a framework to local businesses to use cryptocurrencies to carry out daily transactions and for investments. The Assembly also progressed into legal projects with a motive for strengthening and promoting Petro's national and international cryptocurrency.
According to the report published by local spokesperson Prensa Latina, the legislator of the plenipotentiary body for the business sector and member of the Diversified and Productive Economy Commission, Gerson Hernandez, said that progress in legislation is focused on strengthening the program for Recovery, growth and economic prosperity promoted by the Executive.
The legislator also said that the new amendment to the Money Laundering Act was announced to promote investment in Venezuela and revive the economy. The amendment also authorizes the exchange house to legally carry out exchange transactions with the inclusion of the digital currency.
The report also claimed that Hernandez would have told the press
"The fundamental objective of the legislation is to give greater support and confidence to the business sectors to invest and complete their transactions through the cryptocurrency, in order to avoid international controls that seek to block the economic and financial development of the Venezuela"
Venezuela is experiencing the worst economic crisis in its history, with an inflation rate of over 400% and a volatile exchange rate. Strongly indebted and with rising inflation, the citizens of Venezuela have relied on cryptocurrencies as a safe haven against the decline in the Argentine peso.
This legal framework will certainly promote the use of cryptocurrency in the country and I hope this will help Venezuela to improve its economic conditions and strengthen its economy.
Will Cryptos help Venezuela improve its economic conditions? Let us know your opinions on the same
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