The state of Venezuela continues to fight it and its resistance to the American sanctions imposed on it, which made it suffer economically.
This time, Venezuela did not resort to oil in its attempt to bypass the economic sanctions, but rather to decentralized technical methods.
Venezuela has chosen to create a “decentralized” trading platform that uses digital versions of assets and traditional financial instruments.
In recent days, Venezuelan President “Nicolas Maduro” paved the way to announce the platform by unveiling the creation of the Anti-Siege Law for the sake of national development and the guarantee of human rights.
And "Maduro" identified several strategies to stimulate the national economy, which was directed to him by seven separate executive management orders from US Presidents "Obama" and "Trump" and more than a dozen additional penalties.
Maduro stated :
The law promotes the use of all cryptocurrencies, not just the state-backed petro currency, as a way to protect Venezuela's financial sovereignty.
The Anti-Penal Law is the first response ... to give new power to the use of petro and other cryptocurrencies, at the national and global level, in internal and external trade, so that all cryptocurrencies in the world supported by the state or private currencies can be used.
Shortly thereafter, the new Venezuela decentralized platform was created.
Although Venezuela loves highly centralized administrative procedures, this new platform is largely decentralized within the existing legal framework.
The government says all contracts and protocols are public and auditable, and it is clear that participants will have their own keys and digital currencies.
The platform is a DeFi decentralized financing platform operating on the Ethereum blockchain, where traders will be able to exchange traditional assets in the form of “ERC223” contracts (an alternative to ERC20) and ERC721.
The reason for adopting this protocol is to allow trading without a central broker.
In this way, investors will be able to trade derivatives, commodities, real estate, stocks, ETFs, and bonds on the new decentralized exchange.
In a live broadcast, Manuel Aaron Fajardo Garcia, one of the project leaders, said that the platform will operate independently of the traditional system and has a secondary marketplace that works with P2P technology.
The DeFi experiment in Venezuela is another in a long line of blockchain experiments with a geopolitical background.
It is too early to know if the primary goal of this platform is to stimulate financial activity or attract foreign investment through the back doors of cryptocurrencies.
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