Venezuela Bets on De-Dollarization After Foreign Currency and Crypto Tax Is A...
The government of Venezuela is now focusing its action on trying to establish the bolivar as the go-to currency for purchases in the country. According to several economists, this might be a risky bet in a country that has just exited hyperinflation and still suffers high levels of inflation. However, the establishment of a 3% tax targeting expenses in foreign currency and crypto is having some effects in this regard. Venezuela Seeks to Strengthen Its Fiat Currency After having defacto dollarization, which the president of the country called an “escape valve” from....
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After the Venezuelan parliament approved a law aimed at reducing inflationary pressure on the struggling fiat bolivar, certain crypto and foreign currency transactions would be taxed at up to 20%. Venezuela To Tax Crypto Transactions At 20% The Venezuelan government has authorized a new tax that will affect cryptocurrency and foreign currency transactions and payments. […]
Prof. Steve Hanke, who 14 years ago was the chief intellectual architect of Ecuador's points out that Dollarization brought great benefits to the Ecuadorian people. Now that there is a growing pressure from the government to totally quit Dollarization, Prof. Hanke says that going off the dollar will also have terrible consequences for Ecuador's economy: "If you go off, the fiscal deficit gets bigger, the level of debt gets bigger, inflation goes up and economic growth goes down. All the economic indicators just go south." Ecuadorians are perfectly aware that dollarization has enabled them....
India’s central bank, the Reserve Bank of India (RBI), has expressed concerns that cryptocurrencies could lead to the dollarization of a part of the Indian economy. “It will seriously undermine the RBI’s capacity to determine monetary policy and regulate the monetary system of the country.” RBI’s Crypto Warnings and....
The U.S. government is sending USDC payments to Venezuela using Circle and Airtm to bypass Nicolas Maduro, the nation's dictator.
Citibank has recently announced its decision to terminate the accounts belonging to the Central Bank of Venezuela, leaving the nation with no means of conducting foreign transactions. Venezuela is staring at a far worse economic crisis in the coming days, as US-based banking major Citibank intends to close a number of accounts belonging to the Central Bank of Venezuela and other government arms. If the bank indeed closes these Venezuelan accounts, the country will be left without any means to conduct foreign transactions. As the fears of economic isolation loom over the country, Citibank....