Venezuela Begins Registry of Cryptocurrency Miners

In December, we reported when President Nicolás Maduro of Venezuela announced the intention of the government to launch a national cryptocurrency, 'El Petro', to mixed reception.

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Now, his government has launched the Observatorio Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term, a registry for cryptocurrency miners. 860,811 young people have already signed up, according to Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term.com.

Cryptocurrency is popular in the country. Heavily subsidised electricity costs make mining actually feasible to operate profitably, while chronic shortages of goods and a worthless national currency means that to many it is something of a lifeline, as it allows them to import food and medicine through e-commerce websites.

The Venezuelan government has not always been friendly to cryptocurrency. Back in March, the state-owned broadcaster Corporación Venezolana de Televisión branded Bitcoin users "subversive".

In August, CNBC called Venezuela one of the most dangerous places to mine Bitcoin. Although it is technically legal there, police have been regularly arresting people for mining, usually after being alerted to the presence of mining equipment by the high electricity usage. Typical charges include electricity theft and fraud. According to The Atlantic, corrupt police often use confiscated mining equipment for themselves.

After one such raid in December, local police said in an official statement: "Digital currency is not endorsed by any banking institution in the world nor has it been approved by any country. The currency is being marketed with legal appearance but in essence it operates in secret," according to Reason.com.

This hasn't been strictly true for a while now, and the government of Maduro has changed its tune. According to RT, last week he announced on national television that El Petro will be backed by the Ayacucho oil field, which holds five billion barrels of oil. “Every single Petro will be backed by a barrel of oil,” he said. “We will set up a special team of cryptocurrency specialists so they will be engaged in mining in all states and municipalities of our country.”

This enlistment drive is to take place through the national registry of cryptocurrency miners. Carlos Vargas, Superintendent of Venezuelan Cryptocurrency, said: "We are building the Blockchain Observatory for the possibility of a registry for all those who are exercising digital mining in Venezuela. We want to know who they are, we want to know where they are, we want to know what equipment they are using. We want to move towards the regularization of digital mining in Venezuela," according to Criptonoticias.

Said Maduro: “We are facing a financial war against the country which we have denounced, and the opposition has denied. There are business people who are unaffected by Donald Trump's blockade. With this, we will join the 21st century.”