Venezuela Bolivar Protected from Crypto Transactions with Real-Time Monitoring

• Venezuelan banking watchdog Sudeban is working on a mechanism to review crypto-related transactions in real-time to control the influence these have on the exchange market.
• Analysts have linked the situation in peer-to-peer (P2P) crypto markets to the recent drop in the value of the bolivar.
• The Venezuelan government is aiming to monitor the movements of crypto-based P2P exchanges to protect the value of the bolivar.

Sudeban, the Venezuelan banking watchdog, is currently taking steps to ensure the stability of the Venezuelan currency by monitoring crypto-related transactions. This move comes after analysts have linked the recent drop in the value of the bolivar to the situation in peer-to-peer (P2P) crypto markets.

In order to protect the value of the bolivar, the Venezuelan government has implemented a system to monitor banking transactions in real-time with the help of Sunacrip, the national cryptocurrency regulator. This system is designed to detect any irregular practices that might attack the currency or the stability of the exchange market. As part of this measure, more than 75 bank accounts have been blocked due to suspicious activity related to cryptocurrency transactions since the end of 2021.

The Venezuelan government is also taking steps to ensure that the bolivar is not adversely affected by large volumes of cryptocurrency transactions. To this end, Sudeban has begun to examine the link between the volumes exchanged in cryptocurrency markets and the U.S. dollar – Venezuelan bolivar exchange rate. While the government has not explicitly stated there is a direct relation between these two variables, analysts have suggested that the recent cryptocurrency drought in peer-to-peer markets due to the collapse of FTX, may have contributed to the sudden rise in the aforementioned exchange rate.

The Venezuelan government is determined to protect the stability of the bolivar in the face of potentially destabilizing crypto-related transactions. As part of this effort, Sudeban is working to create a reliable and efficient monitoring system to detect any irregular practices that might affect the value of the national currency and the stability of the exchange market. Furthermore, the government is examining the relationship between the volumes exchanged in cryptocurrency markets and the U.S. dollar – Venezuelan bolivar exchange rate, in order to prevent large volumes of crypto transactions from having an adverse effect on the value of the bolivar.