Venezuela is enduring an unprecedented humanitarian crisis, causing a mass exodus of its people. An estimated two million people have fled Venezuela in the last two years, and that number is expected to double in upcoming months as the country's economy continues to implode. In search of a long-term solution to a man-made crisis, the international community debates policy options aimed at increasing pressure on the Venezuelan regime while limiting the suffering of the Venezuelan people. Cryptocurrencies show the potential to be an “out-of-the-box” tool that tackles both issues simultaneously. Venezuela's cryptocurrency market is on the rise. The Maduro regime has been tightening controls on the economy and continues to reject humanitarian aid from any sources outside the country—a tactic to strengthen its political power. However, cryptocurrency technology is enabling a form of external aid through peer-to-peer cash mechanisms. Family members are sending cryptocurrency-based remittances directly to the recipient saving fee costs and time. People living abroad are donating cryptocurrency to domestic non-profit organizations to buy and distribute food within the country. At its core, a public cryptocurrency allows any individual to transfer value directly to a recipient without the need of an intermediary to facilitate the exchange. Given its decentralized and peer-to-peer nature, cryptocurrency transactions in networks like Bitcoin or Ethereum are outside of President Maduro's control. The implication of these rapidly-emerging grassroots initiatives aligns with international efforts to empower the Venezuelan people while weakening Venezuela's failing regime. Addressing Security Concerns All sorts of cutting-edge technologies can be used by criminals as a way to skirt law enforcement. For example, the Maduro regime is attempting to adopt a state-sanctioned cryptocurrency—a failed attempt to avoid international sanctions and finance its illicit activities. The petro, the regime-controlled and allegedly natural resource-backed cryptocurrency, is not tradable and has no value (other than merely what the government says it is worth).
