Venezuela Adopting a Bitcoin Standard as Military Builds a Bitcoin Mining Farm
Is Venezuela moving towards a Bitcoin standard? It appears so after its military, the Bolivarian Army, created its own Bitcoin mining farm, all with the backing of the government regulator, Sunacrip.
Assembled by the military, the Bitcoin mining farm will mine BTC and a few other cryptocurrencies, to help generate what it calls ‘unblockcable income’ to get around US sanctions.
The news came via the Bolivarian Army’s Instagram page, which released the news with a short statement and video clip of the Bitcoin mining farm.
‘The Center for the Production of Digital Assets of the Bolivarian Army was inaugurated by the 61st GB Agustín Codazzi Engineers Conditioning Brigade,’ said the statement.
The inauguration was led by Bolivarian Army General Lenin Herrera, Commander of the Brigade, and Major General Domingo Hernández Lárez.
The Instagram video and accompanying statement explains the Bitcoin mining operations and the necessity for the organization to do so.
‘For the sake of strengthening and self-sustainability of our Bolivarian army,’ said the statement. ‘The harvesters of the 61st Agustín Codazzi Engineer Conditioning Brigade, proudly present the technological project of the Army’s digital asset production center.’
‘In perfect civic-military alliance, the project that represents an unblockable source of income, has mining farms and a refurbishment line, which allow the production of cryptocurrencies in real time, ensuring the generation of income for the well-being of our staff.’
Is Venezuela Preparing Itself for a Bitcoin Standard?
The mining centre has the support of the Venezuelan government, which passed an anti-blockade bill in October.
The bill provides the Venezuelan government ‘an instrument to shield the economy of the country from the constant onslaught of the United States government, which seeks to destabilize the country,’ according to the legislator spokesperson.
And it appears that the military’s Bitcoin mining farm is the first benefactor of the new law, which General Lenin Herrera said had been created to ‘defeat the fiat system’.
‘These local mining farms and the miners’ refurbishment line allow production in real-time, defeating the fiat system, blocked and managed by colonialist interests that have affected the Venezuelan people,’ said the general.
This along with recent news that Pizza Hut was now accepting Bitcoin in Venezuela, it seems like the oil rich state is racing to be the first to fully adopt a Bitcoin standard.
Pizza Hut has joined other multinationals Burger King and Intercontinental Hotels in accepting Bitcoin payments, as a lack of confidence in the hyperinflated bolivar made it impossible to use.
First Multi-Nationals, Now The Venezuelan Government Behind Bitcoin Adoption
Venezuela is the ideal candidate for the first nation sate to adopt Bitcoin. Cut off from world trade by US sanctions, a hyperinflating currency, and copious amounts of energy they can’t export…
Now they are realizing they can turn that energy into value, and earn an asset that is valued and tradable worldwide.
The Venezuelan government know this, and they see it as their only way to avoid a complete economic crisis (or to line their own pockets). And so they have quickly issued new laws so they can turn their resources into Bitcoin.
I expect this Bitcoin mining farm to be the first of many Venezuelan government run farms. What else is it going to do with its excess energy?
Will Venezuela be the first nation state to announce it is holding Bitcoin? Only if it beats Iran to it.