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Venezuela banned cryptocurrency mining throughout the country

Venezuela banned cryptocurrency mining throughout the country

In a publication on social networks, the ministry announced a “Special Load Control Plan” together with the Public Ministry aimed at “high consumption users linked to digital mining.”

Courtesy Final Version

The government of Venezuela banned mining cryptocurrencies in the country due to its high energy consumption, as announced by the Ministry of Popular Power for Electric Energy (MPPEE).

In a publication on social networks, the ministry announced a “Special Load Control Plan” together with the Public Ministry aimed at “high consumption users linked to digital mining.” “The purpose is to disconnect from the SEN (National Electrical System) all cryptocurrency mining farms in the countryavoiding the high impact on demand, which allows us to continue offering an efficient and reliable service to all the Venezuelan people,” explained the MPPEE.

It should be noted that the country experienced recurring power outagesentity. In this sense, the five days of blackout in 2019 in the majority of the State stand out.

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The country experienced recurring electrical blackouts.

The country experienced recurring electrical blackouts.

Cryptocurrencies in Venezuela: the Government targeted the miners

This has not been the only measure by Caracas on this front. Recently, the Government seized more than 2,000 cryptocurrency mining machines in the state of Aragua as part of a government initiative against corruption.

Venezuela is not the first country to apply this type of partial or total restrictions. Other nations such as China, Kazakhstan or Kuwait, among others, due to the high energy consumption of these processes.

In recent weeks it has become known that the state oil company Petroleos de Venezuela (PDVSA) would have been using cryptocurrencies to avoid the sanctions imposed by the United States on Venezuelan crude oil.

As reported by ‘Reuters’, PDVSA has been slowly moving oil sales from US dollars to tether (USDT), a stable digital currency backed by the eponymous company and whose value is linked to the dollar. Subsequently, Tether, the stablecoin issuing company, announced that it would stop the use of its token for these purposes.

Source: Ambito

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