Venezuela Mulls Setting up Crypto Central Bank

The draft amendments to the constitution are due to be tabled for consideration by the Constituent Assembly’s board in 35 days.

Venezuela’s National Constituent Assembly is reportedly drafting constitutional amendments aimed at the creation of a central bank for cryptocurrencies.

According to a Reuters report, in addition to the creation of a cryptocurrency central bank, the amendments envisage a separate court that will be above the Supreme Court.

Details were not revealed, but the draft is due to be presented in 35 days to the board of the Constituent Assembly.

The new institution will have “functions in exchange, monetary and financial policy”, Hermann Escarrá, one of the most influential members of the assembly that works on changes to the 1999 constitution, told Reuters.

The amendments will reportedly include Venezuela’s national cryptocurrency, the Petro, that was launched earlier this year and is allegedly backed by the country’s oil reserves.

The draft changes to the constitution will also provide access to foreign investments for the local companies, particularly the companies in the oil sector.

In the end of July, Venezuela’s president Nicolas Maduro announced the creation of a new Venezuelan currency – the Bolívar Soberano (Sovereign Bolivar), which will replace the current Bolivar Fuerte (VEF) and is going to be pegged to the Petro, shedding five zeros from the hyperinflation-stricken currency.

However, the Petro is not used almost anywhere and is considered by many as “shitcoin”, despite Venezuela’s attempts to promote it. Earlier this year, there were reports that the country approached India offering a 30% discount on the price of oil, provided it was paid for in Petro, which India allegedly declined.