Sanctions imposed on Venezuela have limited its access to financial markets, prompting the country to potentially explore cryptocurrencies, according to experts. The decentralized nature and privacy features of cryptocurrencies, like bitcoin, make it nearly impossible to determine Venezuela's exact holdings and their locations. However, experts agree that if President Maduro and his associates possess bitcoin assets, they might soon be mobilized, affecting cryptocurrency markets whether they are sold, confiscated, or exchanged.
Gui Gomes, founder and CEO of Latin America-based bitcoin firm OranjeBTC, stated, "It's very fair to assume Venezuela had meaningful exposure to bitcoin. Given that they were excluded from the global financial system, probably they had gold, bitcoin and some dollars under their mattress." Experts suggest that Venezuela might have substantial quantities of the cryptocurrency, possibly worth billions in U.S. dollars.
Following President NicolƔs Maduro's ousting, global attention is focused on Venezuela, not only for its extensive oil reserves but also for its potential bitcoin holdings. Project Brazen reported that Venezuela might have around $60 billion worth of bitcoin, based on unnamed sources, although this figure lacks confirmation through blockchain analysis. Such holdings would position Venezuela among the world's largest bitcoin owners, rivaling major entities like Strategy.
According to Bitcointreasuries.net, Venezuela's holdings are estimated at 240 bitcoins, valued at approximately $22 million. This estimate was derived using data from a blockchain analytics firm cited by media sources, suggesting the stash ranks as the ninth largest held by a government entity.
These figures should be approached cautiously. Many firms offering crypto custodial solutions, such as Anchorage Digital and Fireblocks, are based in jurisdictions with ties to the U.S. or its allies, leading Venezuela to possibly use covert methods to build its reserves. Diogo MĆ³nica from Haun Ventures remarked that bitcoin's off-the-shelf solutions make it straightforward to meet high-security storage requirements.
Consequently, any bitcoin owned by Venezuela is likely scattered across multiple crypto wallets controlled by various generals and members of Maduro's party, complicating tracking and identification efforts, according to Gomes. Chainalysis, a blockchain analysis firm, asserts that while transaction histories and wallet balances linked to hardware can be traced, identifying wallet owners' identities remains elusive.
Nonetheless, Andrew Fierman, head of national security intelligence at Chainalysis, indicated that Venezuela has possibly accumulated significant bitcoin reserves in response to financial market isolation. The country is known for unconventional wealth management techniques, such as dispatching Maduro's allies abroad to swap physical assets for liquid funds.
Fierman noted, "If they're willing to send a guy on a private jet with a ton of gold on board, it would make a lot of sense that they would also seek to utilize crypto assets for both store of wealth and also for cross-border trade." He refrained from estimating Venezuelaās bitcoin holdingsā total value.