Venezuelan opposition leader hails Bitcoin as a ‘lifeline’

María Corina Machado discussed Bitcoin’s role in helping Venezuelans combat hyperinflation and economic collapse in an interview.

Machado discussed the economic challenges facing Venezuelans in a recent interview with Alex Gladstein of the Human Rights Foundation, published in Bitcoin Magazine. They discussed how Bitcoin (BTC) served as a financial hedge for citizens under the Chávez and Maduro regimes.

Machado noted that the national currency, the bolívar, has been hit by inflation and has lost 14 zeros since 1999. He described Bitcoin as a “lifeline” that allows Venezuelans to preserve and recover their wealth by circumventing government-controlled exchange rates.

“We see Bitcoin as part of our national reserves, helping to rebuild what the dictatorship stole.”

Maria Corina Machado

Venezuela’s economic turmoil

Machado’s comments come at a time of widespread economic turmoil in Venezuela, where inflation has reached 1.7 million percent in 2018, crippling the economy despite its vast oil reserves.

Bitcoin emerged as a tool of resistance that allowed citizens to preserve their savings and finance their escape from the country.

Following the presidential elections in Venezuela in July 2024, which saw protests against the re-election of Nicolás Maduro, the Venezuelan government blocked access to Binance and other online platforms, including X (formerly Twitter). Binance confirmed the access issues but assured users that their funds were safe.

The government also ended the use of the state-backed cryptocurrency Petro due to scandals and inefficiencies.

Opposition figure Leopoldo Lopez also praised crypto, especially stablecoins, for overcoming financial censorship and volatility in 2023. Despite Maduro’s control over the banking system, Lopez noted that crypto was used to distribute aid to healthcare workers during the pandemic, benefiting 65,000 people

Looking ahead, Machado sees Bitcoin becoming part of Venezuela’s national reserves, helping to rebuild the country’s economy and ensuring financial autonomy as the country shakes off years of dictatorship.