Nicolas Maduro, President of Venezuela, said the country could offer cryptocurrency-based loans to the agricultural sector in addition to traditional loans in multiple fiat currencies. He also said that Venezuela has been dealing with oil and other cryptocurrencies for three years, pioneering the use of this type of asset in Latham.
Maduro hinted at the possibility of providing cryptocurrency loans to the agricultural sector in a statement made at a cabinet meeting last Thursday. He said the country will look for new ways to finance domestic agriculture and said that these loans will be provided at low interest rates in the interests of farmers.
“I ask you to personally lead the public banking sector and encourage private banks to increase loans and financing on the most favorable terms for all food producers in the country,” Maduro ordered his ministers.
The proposal also introduces the idea of providing these loans in several fiat currencies such as the euro and even the Chinese yuan. Although Maduro mentioned Venezuela’s own cryptocurrency, petro, he also said that they will work with all cryptocurrencies, as the government has been doing for three years now.
This is not the first time that the Venezuelan government has turned to cryptocurrency to try to improve its economic situation.
Venezuela was one of the first Latamian countries to have a large community of bitcoin miners even before this activity was regulated. Additionally, Venezuela was a pioneer in cryptocurrency adoption, launching one of the first government-sponsored cryptocurrencies, petro.