My 99-year-old grandmother is more likely to buy bitcoin than the Federal Reserve, said market analyst Alex Kr\u00fcger.<\/p>\n
The economist was responding to Anthony “Pomp” Pompliano, the co-founder &\u00a0partner at Morgan Creek Digital Assets, on his comments on Venezuela. Pomp cited a Bloomberg report that claimed Venezuela’s central bank is holding bitcoin and ether in its reserves. He used it as evidence to prove bitcoin’s growing adoption among central banks, declaring that every country will follow the footsteps of Venezuela.<\/p>\n
Kr\u00fcger, who is known for his balanced views on global and bitcoin markets, reminded that a US sanctions-hit\u00a0Venezuela is terrible news for bitcoin. Emphasizing that it is the world’s 9th most corrupted country, Kr\u00fcger stated that their central bank using cryptocurrencies would not help the industry. On the contrary, it would hamper bitcoin’s growth altogether.<\/p>\n
“Bitcoiners are celebrating the central bank of the 9th most corrupt country in the world considering holding bitcoin … as Petroleos de Venezuela somehow owns some bitcoin and is desperate to use it to skirt US sanctions. Common sense indicates this is not at all bullish.<\/p>\n
“If anything, Venezuela using Bitcoin to skirt US sanctions would increase the probability of the US cracking down on bitcoin as a “national security issue”.<\/p><\/blockquote>\n
Crisis and Bitcoin<\/h2>\n
Venezuela is going through the world’s worst economic crisis<\/a>. Over a quarter of its population has fled abroad as the country slips into a web of inflation. All its international lines to finance stands cut thanks to Washington’s protest against the reelection of President Nicol\u00e1s Maduro\u2019s government. That has left the Venezuelan central bank with little-to-no alternatives to conduct global financial transactions.<\/p>\n
Bitcoin, at the same time, appears as a solution to the South American nation. The payment protocol works without the interference of governments and central banks. A network of miners, distributed worldwide, replaces centralized payment settlement protocols like Swift, making it possible for users to transfer value across borders.<\/p>\n
\nReports are surfacing that Venezuela is considering holding Bitcoin and Ethereum in their central bank reserves, while also using it to pay organizations.<\/p>\n
Every country will eventually do this. <\/p>\n
Just a matter of time before the game theory kicks in \ud83d\udd25https:\/\/t.co\/oq29xQBtsd<\/a><\/p>\n
— Pomp \ud83c\udf2a (@APompliano) September 26, 2019<\/a><\/p><\/blockquote>\n