Venezuela has introduced a 20% tax on crypto transactions, local sources have reported.
The country’s National Assembly held a second discussion on the matter last Thursday, looking to pass a bill that ensures that “large financial transactions” are taxed properly.
This includes cryptocurrencies such as Bitcoin (BTC). Based on these reports, this means that local companies that carry out transactions in US dollars or BTC will have to pay the tax.
This is supposed to incentivize local businesses to carry out their operations in the local currencies, including the El Petro, Venezuela’s own crypto, launched in an attempt to fight inflation which came on the tail of economic sanctions, and the Venezuelan Bolivar.
In 2021 alone, the national currency lost 70% of its value and tanked to near-zero over the past decade.
The bill aims to ensure that payments conducted in national currencies or cryptocurrencies are given a similar or equal treatment to foreign currencies, which have become the preferred option for many Venezuelans who doubt their government’s competence to pull the country out of an economic precipice.
Venezuela has also entertained the idea of accepting BTC in a bid to pivot towards cryptocurrencies that are not as easily controlled by the international financial system.
Crypto has become a beacon of light in many oppressed countries. In Afghanistan, women coders are sent help in the form of crypto with Binance’s assistance to continue their studies untracked by the Taliban government.