Russian experts and diplomatic representatives of Venezuela debated the use of crypto currencies, according to Sputnik informed the press service of the Russian Association of Cryptocurrency and Blockchain Industry (RAKIB, for its acronym in Russian).
"During the meeting the parties discussed issues related to the use of the Venezuelan digital currency petro in the country's economy and marked the directions of cooperation between RAKIB and the authorities and business community of Venezuela," the press service said.
According to the association, "on November 2, 2018, RAKIB executives met with representatives of the delegation of Venezuela, led by the Vice President of Economic Development of the United Socialist Party of Venezuela [PSUV] and former Minister of Foreign Trade and International Investment Jesus Germán Faría Tortosa, and the ambassador of Venezuela in Russia, Carlos Rafael Faría Tortosa ".
The RAKIB commented on the words of the representative of the PSUV, who pointed out that in his country there is a true "boom" of cryptocurrency and highlighted the national and political consensus that the petro can serve to overcome the economic crisis and oppose the regime of foreign sanctions.
The Venezuelan politician stressed that the Central Bank of Venezuela was one of the most consistent supporters of the promotion of the use of cryptocurrency in the country's economy.
According to the former minister, the Russian crypto industry has achieved a well-deserved respect abroad and pointed out that Russian specialists could offer an incalculable aid to Venezuela when it comes to erecting an effective economic model.
The main challenges currently facing the petro lie in how to use cryptocurrency in international transactions and how to attract foreign investors to the country in a situation of sanctions, said the Venezuelan politician.
For his part, the president of RAKIB, Yuri Pripachkin, said that first of all it is necessary to organize a system that works effectively in the interior of the country and that allows the use of petro for payment in stores, gas stations, pension system and others.
The expert also proposed using cryptocurrency for the payment of state contracts.
In this case, the use of blockchain technologies would eradicate the diversion of resources, since the system guarantees that the payment is made with absolute transparency.
Pripachkin said that if the petro demonstrates its effectiveness within the country, that would become an important signal for foreign investors who will be willing to participate in joint projects, but starting from a truly functional economy.
The president of RAKIB pointed out that the use of cryptocurrency for international payments will depend to a large extent on the recommendations of the financial action group against money laundering FATF, to be published by mid-2019.
For his part, the first vice president of RAKIB, Valeri Romaniuk, proposed to establish a cooperation between the Russian and Venezuelan oil and gas companies, together with banking entities, to study the use of cryptocurrency in bilateral business relations.
Romaniuk considered that it would be opportune to create a working group composed of representatives of the main Russian companies and banks, the Venezuelan state company PDVSA and Russian cryptocurrency experts, that could propose practical solutions for the use of these new means of payment in the commercial exchange. between both countries.
According to RAKIB, the representatives of the Venezuelan delegation showed great interest in this proposal and promised to prepare the corresponding requests shortly.