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The Bank of England has refused the candidacy of Nicolas Maduro, Venezuela's dictatorial leader, to withdraw $ 1.2 billion worth of gold, Bloomberg reported.
This decision comes after senior US officials have asked their British counterparts to disconnect the Maduro regime from its holdings abroad. The UK accepted this request as many other countries joined the US efforts to overthrow Maduro after he became president after winning rogue elections in Venezuela. The anti-Maduro lobby also screened Juan Guaidó as legitimate president, after the party member of the popular will claimed that he had won the presidential elections by right.
Meanwhile, Maduro has shown no sign of defeat. FT said the dictator would not withdraw as long as he would enjoy the support of the Venezuelan army. The answer prompted the United States to say that it would aggravate their economic sanctions against Venezuela, whose central bank has $ 8 billion in foreign exchange reserves.
The moment had-it-been-crypto
Jesse Powell, managing director of Kraken, a cryptocurrency center based in California, took note of the political situation and reminded the parties of the importance of decentralized badets such as Bitcoin.
Not your safe, not your gold. https://t.co/ThSkkuXGqO
– Jesse Powell (@jespow) January 25, 2019
"Not your safe, not your gold," wrote Powell to recall Andreas Antonopolous's famous slogan "Not your keys, not your Bitcoin". The famous Bitcoin evangelist had developed the slogan after the hacking of the BitFinex exchange, according to which traders had lost $ 70 million worth of bitcoins.
Technically, crypto holders enjoy proof of ownership by keeping their wallet's private keys near the safe. But if they return their cryptographic badets to custodians, for example, it is then they keep their private keys. This is similar to how banks operate: they keep the money they need from their clients to reinvest or lock them without the full permission of their owners.
According to Mr. Powell, Venezuela might have an interest in holding Bitcoin badets without a depository – where it would have full control. The indication also applies to countries that are already facing a version of global economic sanctions. Because Bitcoin is a fairer and more inclusive system than fiduciary / government money and can not be sanctioned or censored, cryptocurrency allows individuals / groups to hold valuable property without losing ownership. .
Could Bitcoin put an end to economic sanctions?
Bitcoin, which has experienced impressive growth as a technology and decentralized badet, is still far from achieving its goal of world domination as a reserve currency. The current economic functioning must fail – what they are – to give way to alternatives. And the other options offered by the world should be resolved 100%. Unfortunately, Bitcoin needs many adjustments before bruised and abused governments treat it as a weapon against the economic sanctions imposed by the United States.
Volatility and price manipulation, for example, continue to pose the greatest threat to Bitcoin's growth.
Countries like Venezuela have become laboratories for the big Bitcoin experiment. Only 56% of the Venezuelan population has a bank account and even fewer have access to a credit card. More than 90% of people, however, have a smartphone. It is now up to world leaders to unite to create a network of financial tunnels that formally circumvents the sanctions imposed by the United States. But it is more likely that the alternative order supports a digital currency supported by a central bank on a decentralized badet such as Bitcoin, compatible with a smartphone.
But in Bitcoin, we hope.
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