In the aftermath of President Nicolás Maduro’s recent deposition, attention has shifted toward Venezuela’s not only vast oil reserves but also its potential cryptocurrency holdings, primarily bitcoin. Experts suggest that the Venezuelan regime may possess significant amounts of bitcoin that, if liquidated or confiscated, could have a profound effect on global financial markets.
Gui Gomes, founder and CEO of OranjeBTC, a bitcoin firm based in Latin America, stated, “It’s very fair to assume Venezuela had meaningful exposure to bitcoin.” With sanctions imposed against the nation, limiting its access to global financial systems, the regime might have turned to cryptocurrencies as a workaround. While precise figures on Venezuela’s bitcoin holdings are elusive due to the decentralized nature of the asset, estimates are starting to emerge. Bloomberg, referencing sources from digital publication Project Brazen, recently reported the number could be as high as $60 billion.
This staggering amount would position Venezuela alongside major holders of bitcoin globally. However, data provider Bitcointreasuries.net gives a more conservative estimate, citing Venezuelan holdings at approximately 240 bitcoin, equivalent to about $22 million. The stark discrepancy in estimates is attributed to the difficulties in tracking cryptocurrency, as the assets are likely distributed across numerous wallets managed by officials within Maduro’s regime.
Blockchain analysis company Chainalysis notes that while on-chain analysis can reveal transaction histories, it doesn’t provide conclusive insights into wallet ownership. Diogo Mónica from Haun Ventures pointed out that Venezuela likely used covert methods to accumulate its reserves, given that many reputable crypto custodial firms are based in the U.S. or allied countries.
Andrew Fierman, head of national security intelligence at Chainalysis, also emphasized Venezuela’s historical adaptability when it comes to wealth transfer, including unconventional means like sending officials abroad to exchange physical assets for liquid funds. He mentioned that Venezuela’s past endeavors with cryptocurrencies—such as the failed petro token released in 2018—illustrate its experimentation with digital assets.
As speculation grows regarding the next steps for Venezuela’s potential bitcoin holdings, various scenarios present themselves. Sebastian Pedro Bea, president and chief investment officer at ReserveOne, suggests that with the political instability following Maduro’s ousting, the likelihood of the regime’s assets being sold or liquidated has increased. This could result in a temporary decline in bitcoin’s price if a significant quantity were to enter the market.
There is also the possibility of U.S. authorities seizing these assets as part of ongoing enforcement actions. Critics and supporters alike have raised questions about the logistics of creating a U.S. bitcoin reserve from Venezuela’s holdings, which President Trump previously outlined as a policy goal. Chris Perkins, president of investment firm CoinFund, expressed uncertainty about the legality of such actions, but indicated that any confiscated bitcoin is unlikely to be immediately sold off, maintaining a bullish outlook for the asset in the long term.
The situation emphasizes the delicate intermingle of cryptocurrency with geopolitical issues, showcasing how international dynamics can significantly influence digital asset markets. As developments unfold, stakeholders across the cryptocurrency landscape remain vigilant, aware that undercurrents from Venezuela could ripple through the global bitcoin ecosystem.
