Venezuela Army sets up cryptocurrency mining centre for “Unblockable Income”

The 61st Agustín Codazzi Engineer Conditioning Brigade inaugurated Venezuelan Army’s cryptocurrency mining centre on November 19th.

By · Dec 2, 2020 . 7min read

Venezuela Army cryptocurrency mining centre latest news

Venezuela’s army in its bid to defy crippling sanctions and a crushed economy has inaugurated a cryptocurrency mining centre.

According to a local media, the 61st Agustín Codazzi Engineer Conditioning Brigade inaugurated Venezuelan Army’s cryptocurrency mining centre on November 19th. Bolivarian Army General Lenin Herrera, Commander of the Brigade accompanied by Major General Domingo Hernández Lárez, Commander of the Bolivarian Army led the inauguration.

The non-military officials present from the Venezuela authorities include representatives from Superintendencia Nacional de Criptoactivos y Actividades (Sunacrip). Moreover, a private company Crypto & Trading was also present. Sunacrip is the apex regulatory authority concerned with regulating the cryptocurrency industry in Venezuela.

Following the inauguration, Venezuela army posted an Instagram video confirming the new cryptocurrency mining centre and their rationales for toeing that path.

 “For the sake of strengthening and self-sustainability of our Bolivarian army, the harvesters of the 61st Agustín Codazzi Engineer Conditioning Brigade, proudly present the technological [blockchain] project of the Army’s digital asset production center,”

The video continued by saying ,

The era of cryptocurrency production begins in all units of the military component, which will be unblockable income. 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,”

Venezuela’s journey from banning cryptocurrency mining to legalizing and now adopting it via its Army

As the state controls the Army, this represents backtracking from its earlier stance. Back in June, Venezuela banned crypto mining in state-owned houses. Moreover, its grouse then was that it is constituting electricity crisis. However, by September, it went on to legalize cryptocurrency mining. Sunacrip announced that individuals involved in legally mining bitcoin and other cryptos must instantly apply for a license from the agency.

Venezuela is a socialist run state that has its bolivar (official fiat currency) become worthless due to galloping inflation. While the citizens have continued to seek ways to escape the failing economy, many have resorted to cryptocurrencies. Moreover, Dai, stablecoin by Maker had its adoption grow dramatically as people were looking to hedge.

Venezuela’s authorities as led by Nicolas Maduro has been at loggerheads with the United States. The latter has slammed sanctions upon sanctions on Venezuela for various reasons. Some of it includes gross violations of human rights. Meanwhile, Russia continues to prop up Venezuela helping to keep the regime to remain intact. Even after numerous defections from its top generals and crack in its legislature, Maduro’s grip remains tight on the country.

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