Venezuela’s Maduro Turns to Cryptocurrency as Lifeline Amid Trump’s Economic Pressure

As the economic noose tightens around Venezuela, opponents of President Nicolás Maduro are betting that a fresh wave of financial hardship will be the catalyst to finally oust his government. However, Maduro appears to be employing an unconventional strategy to cushion the blow: embracing cryptocurrency.The Trump administration has been ratcheting up pressure on Venezuela's economy, with the aim of dislodging Maduro from power. The latest salvo came in August, when US President Donald Trump signed an executive order imposing a 90-day ban on dealings with Venezuela's gold sector, followed by sanctions on several key government officials. The measures are designed to choke off what little revenue Maduro's government generates from its dwindling gold reserves.But Maduro seems to have found an unlikely ally in his quest to circumvent these sanctions: cryptocurrency. The embattled leader has been aggressively promoting Venezuela's own cryptocurrency, the Petro, which was launched in 2018. Backed by the country's oil reserves, the Petro has been touted by Maduro as a way to bypass US-led financial sanctions and access international financing.To encourage adoption, Maduro's government has made it compulsory for Venezuelan businesses to accept the Petro for certain transactions. The government has also announced plans to pay some of its employees and pensioners in Petro, effectively making the cryptocurrency a de facto salary for some citizens.The strategy appears to be bearing some fruit. Despite a grueling economic crisis that has seen Venezuela's inflation rate spiral out of control, Maduro's government claims that the Petro has helped stabilize the country's economy to some extent. The government reports that over 1.5 million Venezuelans have opened Petro wallets, and that the cryptocurrency has generated over $1 billion in revenue.While some observers are skeptical about the Petro's long-term prospects, Maduro's gamble on cryptocurrency has bought him some breathing room. With hyperinflation running at an eye-watering 1.3 million percent, and food and medicine shortages widespread, the Venezuelan economy is on the brink of collapse. Yet, by leveraging cryptocurrency, Maduro's government seems to have found a temporary reprieve from the economic pain.As the standoff between Maduro and his opponents continues, one thing is clear: the Venezuelan leader is determined to cling to power, no matter the cost. With the US and its allies pushing for regime change, Maduro's unconventional embrace of cryptocurrency may just be the lifeline that keeps his government afloat – at least for now.