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Venezuela Could Become One of the First Countries Collecting Taxes in Crypto

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Venezuela flag

Venezuela could become a crypto nation if the government decides to start collecting taxes using cryptocurrencies. In a recent document released by the Venezuelan Government, they inform that the National Tax Harmonization Agreement establishes the Petro as a unit of account to pay taxes. 

Although the government cannot collect taxes using foreign currencies, the document released explains that they can accept this cryptocurrency. Venezuela launched the Petro a few years ago to reduce U.S. influence and fight against hyperinflation. 

Venezuela Could Start Accepting the Petro for Taxes

The Venezuelan government could start collecting taxes using the Petro, the local national cryptocurrency. The currency was created with the goal of fighting against hyperinflation and also to avoid U.S. restrictions and sanctions. 

The main goal of the National Tax Harmonization Agreement is to protect the “productive sector” and the “Venezuelan population” from “distorted prices.” Delcy Rodriguez, the vice president of Venezuela is expected to be in charge of the implementation of this new tool that would allow the government to collect crypto taxes. 

On the matter and about this agreement, Delcy Rodriguez commented:

“It is the simplification of procedures, making more efficient the administrative activity of the State and placing it at the service of the people, of the economic sectors that stimulate economic activity in the productive and commercial areas, framed in this week of flexibility that begins on Monday.”

The government of Venezuela has also tried to collect payments in Bitcoin (BTC), the largest cryptocurrency in the market. For a brief period of time users could pay for their passport renewals using BTC. Despite that, this measure was not available for a longer period of time. This shows the government is certainly searching for new ways to finance its operations and the high expenditures it has. 

Venezuela has been a country hit by poverty, hyperinflation, corruption and socialism. Now it became one of the poorest countries in the world despite having large oil reserves and a highly skilled and educated population. 

At the moment, the Petro is being used by people to pay in petrol stations and other places. The government has also informed that 15% of the payments made at petrol stations are currently being processed in Petro. This shows an increasing adoption of the cryptocurrency in the country. The Petro could eventually become a secondary currency for the Venezuelan population despite the fact it was issued and it is controlled by the Venezuelan government. 

John Asher

John Asher

I am a crypto-enthusiast that likes to write about the blockchain industry. Mostly, I'm interested in the gaming industry and how it will revolutionize in-game asset ownership.

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