BOD announced the launch of “Crypto Mode” to create a community of national users. The institution said that it seeks to facilitate the massive use of cryptocurrencies in Venezuela.
The Venezuelan bank BOD announced last February 14th an unprecedented decision for Venezuelan banking after activating a customer cryptocurrency transaction service. The institution said that the creation of “BOD Crypto Mode” is aimed at encouraging the “massive use of cryptocurrencies” among its customers.
The financial institution provided few details on the characteristics of the service, the date that it will be operational, the limits on the amounts to be transferred or on the number of daily transactions that a customer can make. The bank stated that “Crypto Mode” seeks to support its users with bank transactions related to cryptocurrencies, but it did not provide any further details either.
BOD explained that “Crypto Mode” helps create an ecosystem that facilitates a secure, transparent and reliable massive use of cryptocurrencies, integrating and developing alliances between the different actors of the cryptocurrency and blockchain community in the country. According to the institution, this will allow operators, users, exchanges and payment systems to interact optimally while ensuring that it would bet on the generation of a community of digital asset operators.
The South American bank mentioned that customers may refer to other users with whom they conduct frequent transactions in licensed exchanges. However, it did not mention whether this will include transactions with international platforms that allow the purchase and sale of Bitcoin and other cryptocurrencies in the local fiat currency, the bolivar (VES).
Liquidity and Cryptocurrencies
The bank BOD would have a guideline whose aim is to provide the cryptocurrency system with liquidity. The decision would facilitate this type of transactions, without placing further obstacles in the international banking system.
Even though Petro, the national government’s cryptocurrency project, is not mentioned, the bank agrees with the compliance of the regulations established by the National Superintendence of Crypto Assets and Related Activities (Sunacrip). In other words, BOD would adapt to the guidelines established by this regulatory body in terms of transactions and other activities with cryptocurrencies.
This rapprochement between national banks and Sunacrip began last October 2018, when it was reported that Sunacrip would meet with public and private banks to discuss the issue of cryptocurrencies, transfers and allowed limits. That meeting was announced while Venezuelan miners and operators were discussing the subject of cryptocurrencies with the superintendent, Joselit Ramírez.
On that occasion, one of the participating operators complained that a national bank did not allow him to conduct more than 14 daily transactions and that the limits in VES were too low to trade in cryptocurrencies. This decision by BOD may allow financial institutions to address these issues.
Another Venezuelan bank, Bancaribe, introduced a new service called “My Foreign Currency Account”, an unpaid mechanism in which users can open accounts in US dollars to deposit funds and withdraw them at the counter. These plans seem to be in line with the little use of VES in Venezuela.
By Alexander Salazar