Venezuela strict on import of cryptocurrency mining equipment

Venezuela banned the import of any new mining hardware. Venezuela is known to be the world’s cheapest country to mine Bitcoin, Country has banned ASIC miners and other graphics cards related to mining.

Venezuela itself launched petro backed by the value of oil but the interest of miners is not happening. The country is facing its worst economic crisis various issues arising simultaneously hyperinflation of currency is so that govt continuously printing a huge number of notes to meet crisis Government even continuously increasing minimum wage but is not sufficient to meet the basic needs. Shortage of food ,crippling debt becoming other concern for the nation due to this ambience of widespread unrest is developing all around the nation.

The backbone of the country is oil but falling oil prices also put pressure in Venezuela. Bolivar (currency of Venezuela ) has lost approximately 99.99% of its value while inflation has gone up by 16147 percent in last five years only. The government has also announced cutting of three zeros from the end of the currency from June 4.

Many citizens find cryptocurrencies as an alternative to save their savings and for investment too. seeing the going scenario in the country minig of bitcoin rises. Thousands of Venezuelans started mining bitcoin and other cryptocurrencies.

Caracus became a mining hub for the miners approximately $530 is required to mine a single BTC, as due to present situation govt has freezed utility bills like Water, electricity, heating etc. so miners taking advantage of it.

Seeing that people rejecting country’s own currency government came in action and put a ban on mining equipment.

In April Superintendent Carlos Vargas :-

“We are in an evaluation process to select and authorize companies that are qualified to import and market digital mining equipment and be responsible for the respective guarantees in our country.”