(MENAFN- The Rio Times) Venezuela's economy, once the envy of Latin America, now survives on a fragile web of cryptocurrency transactions and backdoor oil deals.

Facing crippling US sanctions, Nicolás Maduro's government has turned to digital currencies-not as a futuristic experiment, but as a desperate lifeline to keep his collapsing regime afloat.

Since 2017, Washington's“maximum pressure” campaign has slashed Venezuela's oil revenue by over 80%, pushing inflation to staggering heights and triggering the worst humanitarian crisis in modern Latin American history.

Yet, rather than yielding to democratic demands, Maduro has doubled down on authoritarianism while quietly embracing market-friendly reforms.

His government now sells most of its oil to China in exchange for cryptocurrencies, bypassing traditional banks and funneling hard currency into the economy through state-approved exchanges.



Nearly half of Venezuela's foreign earnings now flow through crypto channels, with stablecoins like Tether becoming the de facto currency for businesses and citizens alike.

This shift is no accident. After years of economic mismanagement and socialist policies that gutted private enterprise, Maduro 's team-led by Vice President Delcy Rodríguez-has pivoted to privatizing oil fields and loosening exchange controls.

The results are mixed: inflation has slowed from its hyperinflationary peak, but the bolívar remains worthless, and social spending has plummeted. The regime's priority is clear: survival, not recovery.

The strategy has worked, at least for now. Oil production has ticked upward, and the government's tight grip on crypto exchanges allows it to manipulate currency markets, propping up the digital bolívar at a cost of millions per week.

Yet these gains come at a steep price. The average Venezuelan still faces food shortages and crumbling infrastructure, while Maduro's inner circle profits from the chaos.

Meanwhile, political repression silences dissent-economists risk arrest for publishing unfavorable data, and opposition leaders languish in jail or exile.

The US, under both Trump and Biden, has wavered between tightening sanctions and offering relief in exchange for concessions.

But Maduro, a master of playing geopolitical chess, has found willing partners in China and Russia, who happily trade in crypto to keep his government solvent. The message is stark: sanctions alone won't dislodge a regime willing to sacrifice its people's welfare to stay in power.

For Venezuela's neighbors, the crisis is a cautionary tale. Socialism's promise of equality has given way to crony capitalism, where only the connected thrive.

As Maduro clings to power, his crypto gambit may buy time, but it won't fix the damage done by decades of misrule. The real question is how long the world will tolerate a government that prioritizes its own survival over its people's suffering.

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