The system would offer support in the first phase for bitcoin, Dash, and petro. The exchange CriptoLago would be part of the platform for transactions.
The governor of the Venezuelan State of Zulia, Omar Prieto, announced this Tuesday, April 20, that a plan to massify a debit card backed by cryptocurrencies is under development. The project received the name of “Bitcoin City” and set its establishment in all the businesses of the regional entity.
According to the authority, the platform would allow users to handle the card and make purchase and payments in bitcoin, Dash or petro. However, merchants will not receive the crypto assets directly but rather bolivars, the country’s national currency. An exchange would come into play in operation, which is still unknown, and would be in charge of converting and debiting the funds in the network.
” We are implementing this system with some important allies who call it the Bitcoin City project (…) all businesses will have this system to pay with bitcoin, Dash or petro,” said Prieto during the transmission of his radio and television program Omar at 7.
The economist also reported that the system would start its implementation on the Rafael Urdaneta Bridge. In other words, drivers who pass through the structure will be able to pay tolls using a debit card.
Bitcoin Exchange as a Joint Quest
The governor did not offer details about when the system would begin. Still, he said that a mixed capital company (public and private) would play an essential role in this implementation; which would be the cryptocurrency exchange or exchange house.
“We as an exchange house, I say “we” because it is a mixed company, we make the transfer, and we transform the bitcoin to what you are paying, you pay with bolivars, and you receive a deduction from your savings in bitcoin, petro or Dash” added the governor.
Prieto would be referring to the CriptoLago exchange located in Zulia, which is one of the exchange houses authorized by the National Superintendency of Crypto Assets and Related Activities (Sunacrip). According to a report from the Chainalysis firm, Prieto serves as the president of CriptoLago.
Currently, users of the exchange can request a debit card for payments at affiliated merchants. The instrument came to light in September 2019 in alliance with the Glufco Company. The platform could be the only active one, although the number of businesses that process payments with this system is unknown.
The exchange house itself posted a brief message on its Twitter account about the governor’s announcement. “We are ready to keep contributing to the growth of the crypto economy of our country,” said CriptoLago on the social network.
Governor Prieto has spoken in the past on different aspects of the Venezuelan bitcoin ecosystem. In May 2018, he accused the illegal mining of cryptocurrencies as the cause of the electrical failures in Zulia.
By: Jenson Nuñez
