In response to a dollar shortage, Bolivia’s YPFB will utilize cryptocurrency for energy imports. This follows a fuel crisis linked to decreased natural gas exports and nationwide protests. Bolivia’s action parallels Venezuela’s past attempt with the petro cryptocurrency, which ended in failure due to corruption and poor adoption.
Bolivia’s state energy company, YPFB, has decided to employ cryptocurrency for paying energy imports due to an ongoing shortage of U.S. dollars, as reported by Reuters. This dollar shortage coincides with a fuel crisis caused by declining natural gas exports, which has sparked nationwide protests.
A spokesperson from YPFB confirmed the transition by stating, “From now on, these (cryptocurrency) transactions will be carried out.” This innovative move places Bolivia among South American nations exploring cryptocurrency for energy payments.
Previously, Venezuelan President Nicolas Maduro introduced the petro cryptocurrency in response to U.S. economic sanctions that severely impacted the country. Maduro claimed the petro would enable new avenues for international financing and announced the issuance of 100 million petro tokens, valued roughly at $6 billion and supposedly backed by Venezuela’s substantial oil reserves.
However, Venezuela’s petro scheme was met with skepticism, leading to its downfall by January 2024 due to waning adoption and corruption scandals. Payments collected through petro were not reported to the national treasury, resulting in the arrest of key government figures, including former PDVSA President Tareck El Aissami.
The fallout persisted as Sunacrip, Venezuela’s cryptocurrency oversight body, was compelled into a restructuring phase. In 2023, Venezuela’s National Power Ministry took action against cryptocurrency mining by seizing over 17,000 machines to combat ongoing blackouts, severely impacting local miners.
In conclusion, Bolivia’s decision to utilize cryptocurrency for energy imports reflects a growing trend in South America amid economic challenges. Venezuela’s prior experiences with the petro cryptocurrency serve as a cautionary tale, highlighting the risks associated with such initiatives. As Bolivian authorities navigate their own dollar shortage and energy crises, the outcome of this strategy remains to be seen and will likely influence future regional policies.
Original Source: oilprice.com
