Government of Venezuela is accused of using cryptocurrencies to bypass US sanctions

by in Cryptocurrency News

Government of Venezuela is accused of using cryptocurrencies to bypass US sanctions

Venezuelan United Socialist party has been accused of avoiding economic barriers inflicted by the authorities of USA. According to locals, Venezuela avoided penalties by using cryptocurrencies via an airline app known as Jetman Pay. This application receives charges from travellers who buy tickets from Maiquetía International Airport and Sunacrip Venezuelan government’s firm, then it turns the taxes into Bitcoins and transfers these reserves to government accounts in China, Bulgaria, Hungary and Russia. Then these funds are converted again and transferred back to Venezuela.

Related: Burger King Venezuela now accepts crypto payments

The cryptocurrencies became a method of obtaining US dollars even though Venezuela has a ban on using US bank accounts and participating in global markets.

This system and the app are operating from February 2018 but include only one airport. Some locals think that authorities may work on expanding the scheme and involving new airports all over the country.

Venezuelan economy and political system have been in chaos and the complete world was following the results expose. The sovereign bolivar, country’s legal tender, has experienced huge hyperinflation and the Venezuelan fiat currency touched an inflation rate of 10,000,000%.