Venezuela’s Banking Watchdog Monitors Cryptocurrency Transactions to Maintain Currency Stability

Venezuela’s bank watchdog, Sudevan, is currently working on a mechanism to review crypto-related transactions in real time to control their impact on exchange market stability. Analysts recently linked the peer-to-peer (P2P) crypto market situation to the recent drop in the value of the bolivar.

Venezuelan government monitors crypto trading

The Venezuelan government aims to monitor the movements of crypto-based P2P exchanges to protect the value of the bolivar. Venezuelan bank watchdog Sudeban on December 20 explained With the help of Sunacrip, the country’s cryptocurrency regulator, we are designing a system to monitor bank transactions in real time.

No further details were provided, but the organization explained that its aim is to “fight irregular practices that attack the stability of our currency and exchange markets.” Means it appears to be investigating the relationship between the amount exchanged in the market and the US Dollar-Venezuela Bolivar exchange rate.

While the government has not explicitly stated that there is a direct relationship between these two variables, analysts have attributed the recent cryptocurrency drought in the peer-to-peer market due to the collapse of FTX to the aforementioned exchange rate. Associated with rapid rate increases. However, this is also said to be mixed with other causes, such as the natural abundance of fiat currency in the market due to vacation-related payments.

In connection with the action, more than 75 bank accounts have been blocked due to suspicious activity related to cryptocurrency trading since the end of 2021, according to a national crypto-focused law firm. Legalrocks said.

Devaluation and inflation cocktail

This follows President Nicolás Maduro’s “drastic change” announced on December 11 to limit the devaluation of the bolivar, which fell from 12.66 bolivars to the dollar on November 28 to almost 20 bolivars to the dollar in December. will be one of the “meaningful” measures 28. This follows another period of significant devaluation in his November when Bolivar lost his 40% of its value.

Analysts have been concerned about exchange rate movements, and analysts are now examining the possible impact of this on inflation in December and next year. The country recently emerged from a four-year period of hyperinflation that began in 2017. Venezuelan economist Jose Guerra forecasts December inflation at his 30%. The central bank of Venezuela has not released an official inflation rate since October, and in his first 10 months of 2022 he recorded a price increase of 119.4%.

What are your thoughts on the idea of ​​monitoring cryptocurrency-related banking transactions in Venezuela? Let us know in the comments section below.

Sergio Goshenko

Sergio is a cryptocurrency journalist based in Venezuela. He explains that he entered the cryptosphere in December 2017 when the price hike happened, and fell behind the game. Computers With an engineering background, living in Venezuela, and influenced by the cryptocurrency boom on a societal level, he offers a different perspective. About the success of crypto and how it can help the unbanked and underserved people.

image credit: Shutterstock, Pixabay, Wiki Commons