Venezuela's opposition backs Bitcoin and wants to build a BTC reserve

A controversial presidential election took place in Venezuela on July 28. In the run-up to the elections, María Corina Machado, the presidential candidate of the democratic opposition, was barred from holding political office. 

Although millions of Venezuelans joined together to form a citizens' movement and voted for the democratic replacement candidate Edmundo González and against President Nicolás Maduro, who has been in office since 2013, the government's electoral authority announced likely falsified results that resulted in a narrow victory for Maduro.

Numerous states and organizations, such as the European Union, did not recognize the election results due to massive irregularities. Even some of Maduro's allies called for the election to be repeated. But Maduro refused to recognize his defeat and crushed the protests against the election, with numerous demonstrators being arrested or even killed.

In an interview with author and strategy director of the Human Rights Foundation Alex Gladstein, democratic opposition leader María Corina Machado commented on the election, emphasizing the role of Bitcoin for democracy in Venezuela.

Machado begins by explaining how the socialist regimes of Chavez and Maduro have destroyed the functioning Venezuelan economy and currency over the last 25 years through centralized decision-making. The politicization of money and the banking system led to the hyperinflation of the once stable Venezuelan bolivar and a catastrophic financial crisis.

In 2018, inflation reached an unimaginable 1.7 million percent, with prices doubling every four days. Since 2016, cumulative inflation has exceeded 8 million percent, driving millions of Venezuelans to flee the country. This financial repression, based on state-sponsored looting, theft and uncontrolled money printing, has occurred despite our vast natural resources and despite an oil price boom that peaked at 147 US dollars per barrel in July 2008.
_{María Corina Machado in an interview}

The Maduro regime also tried to capture the Bitcoin mining companies in the country through centralized decisions, which ultimately led to the industry being excluded from the national grid - Blocktrainer.de reported.

The regime has also used the financial system against the population: accounts have been frozen, assets confiscated and financial services suspended. However, some Venezuelans rely on Bitcoin to protect their own assets from the government's financial reprisals or to finance their escape from the country, Machado explains further.

The opposition, which is currently operating without access to a bank, also relies on Bitcoin. Machado not only sees Bitcoin as a humanitarian tool and an important means of resistance, she also describes the role of Bitcoin in a new, democratic Venezuela of the future. After the regime has been overcome, Bitcoin is to become part of Venezuela's national reserves, for example. Bitcoin will be used to replenish the country's coffers, which were once filled with gold reserves.

We envision Bitcoin as part of our national reserves, helping rebuild what the dictatorship stole. [...] We will restore those reserves and include bitcoin as a key component.
_{María Corina Machado in an interview}

The opposition is also using Bitcoin for donations that cannot be confiscated by the government. This is intended to support the recognition of the opposition's election victory and ultimately the peaceful transition of power. The goal is to transform Venezuela into an open, prosperous and secure society - with a transparent government, low inflation, strong property rights and equal opportunities for all.

Let's use this technology to bring about the change that Venezuela so desperately needs. All the money you donate will support our efforts for a peaceful transition and the recognition of our victory.
_{María Corina Machado in an interview}

The Venezuelan opposition ultimately realized that many problems in the country could be solved with the help of Bitcoin - above all the removal of the dictatorial regime and its central decision-making power.