Venezuela’s Banking Watchdog Will Oversee Crypto Transactions To Preserve Currency Stability CryptoBlog

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Sudeban, the Venezuelan banking watchdog, is currently working on a mechanism to review crypto-related transactions in real time to monitor their influence on the stability of the foreign exchange market. Analysts have recently linked the situation in peer-to-peer (P2P) crypto markets to the recent decline in the value of the Bolivar.

Venezuelan Government Will Monitor Crypto Transactions

The Venezuelan government aims to monitor the movements of crypto-based P2P exchanges to protect the value of the bolivar. On December 20, Venezuelan banking watchdog Sudeban explained that it was designing a system to monitor banking transactions in real time, with the help of Sunacrip, the national cryptocurrency regulator.

Although no further details were provided, the organization explained that the aim was to “address irregular practices that attack our currency and the stability of the foreign exchange market”. This means that the government is looking to examine the link between the volumes traded in the cryptocurrency markets and the US dollar – Venezuelan bolivar exchange rate.

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

In connection with this measure, more than 75 bank accounts have been blocked due to suspicious activity related to cryptocurrency transactions since the end of 2021, according to Legalrocks, a national law firm specializing in crypto.

Devaluation and inflation cocktail

This would be one of the “drastic” measures that President Nicolas Maduro announced on December 11 to stem the devaluation of the bolivar, which fell from 12.66 bolivars to the dollar on November 28 to nearly 20 bolivars to the dollar. dollar in December. 28. This follows another period of sharp devaluation in November, which saw the bolivar lose 40% of its value.

The behavior of the exchange rate has worried analysts, who are now examining the possible effects this will have on inflation rates for December and next year. The country recently emerged from a period of hyperinflation that started in 2017 and lasted four years. Jose Guerra, a Venezuelan economist, predicts an inflation rate of 30% for December. The Central Bank of Venezuela has not released official inflation figures since October, recording a 119.4% increase in prices in the first 10 months of 2022.

Tags in this story bank accounts, bank watchdog, bolivar, crypto watchdog, devaluation, dollar, exchange rate, hyperinflation, monitor, sudeban, Sunacrip, Venezuela

What do you think of the idea of ​​monitoring cryptocurrency-related banking transactions in Venezuela? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late in the game, entering the cryptosphere when the price spike happened in December 2017. Having a background in computer engineering, living in Venezuela and impacted by the cryptocurrency boom at the social, it offers a different point of view. on the success of crypto and how it helps the unbanked and underserved.

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