Venezuelan army begins block reward mining to secure funds amid economic collapse.

The Venezuelan army has begun to block reward mining to secure funds to stave off the effects of economic collapse in the country.

In the latest steps towards digital currency from Venezuela, the armed forces have established a new facility known as the Digital Assets Production Center of the Bolivarian Army of Venezuela, which has already started mining cryptocurrencies like Bitcoin to secure funds. A video posted on Instagram by a division of the army shows the new facility running ASIC mining gear, which is used to solve cryptographic puzzles in proof-of-work algorithms. General Lenin Herrera said the objective of block reward mining was “strengthening and self-sustainability of our units of the Bolivarian Army.”

 

Venezuelan government looks for alternatives amid rising inflation. 

General Lenin Herrera described the center and block reward mining as “unblockable sources of income. Referring to sanctions against Venezuela imposed by the United States, Gen. Herrera said the unit would provide an alternative to the “trust system blocked and controlled by colonialist interests.” Venezuela has suffered from significant inflation in recent months, prompted by political turmoil, falling oil prices, and the effects of the global pandemic in the country. The latest troubles come on top of decades of economic downslide for the country, which remains under heavy international economic sanctions.

 

Venezuelans turn to digital currency amid hyperinflation. 

Venezuela has been suffering from hyperinflation for a long time because of political turmoil. The South American country is facing sanctions from the US and other countries and is not allowed to participate in international trade. Millions of people have left the country because of hyperinflation in the last few years. The Venezuelan government has enforced the use of the country’s oil-backed digital currency Petro in the last year. Venezuelans are also turning to cryptocurrencies amid the increasing hyperinflation. The Petro was launched to help evade international sanctions, and it has been met with some limited success in the country. 

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Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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