Speculation grows surrounding a rumored $60 billion Bitcoin reserve amassed by the Venezuelan dictatorship.
Bitcoin’s growing value and increased use in international trade have thrust it into the limelight amidst the latest geopolitical conflict after the United States captured and extradited Venezuelan dictator Nicolas Maduro.
Major news outlets like CNBC report a shadow reserve of “tens of billions” in Bitcoin owned by the Venezuelan regime, which would make Venezuela the fourth-largest holder of Bitcoin, only trailing Strategy, BlackRock’s IBIT ETF, and Bitcoin’s creator, Satoshi Nakamoto.
There is also growing speculation that the United States seized the Bitcoin, and that the seized assets could become part of the United States’ strategic reserve.
“There are multiple reports that the government itself [Venezuela] has been looking to avoid sanctions by doing sales of oil in Tether, which they then move into Bitcoin…so even the promise that perhaps the US government might seize these assets, hold onto it, that’s a bull case for Bitcoin,” said CNBC.
If such a massive Venezuelan reserve in fact exists and was to be seized, the U.S. Government could become one of the largest identifiable holders of Bitcoin, surpassing Strategy and BlackRock.
The estimated total of 600,000 BTC is sourced from a combination of reports from the likes of Chainalysis, Reuters, and The Wilson Center, but it should be noted that there is significant room for error in the estimates, and neither the U.S. nor the Venezuelan governments have publicly disclosed any potential holdings.
Jeff Park, an advisor to Bitwise, is also speculating on the potential knock-on effects of the situation in Venezuela. “What if Venezuela is the US Strategic Bitcoin Reserve?” Park posted on X.
“No monetary asset is more resistant to unauthorized seizure than Bitcoin when multi-signature private keys are secured and distributed. Where human history is full of militaries plundering enemies’ gold reserves to continue their conquest, properly secured bitcoin is asymmetrically resistant to being seized,” Timot Lamarre, Director of Market Research at Unchained, told The Defiant.
“This will have significant implications for countries maintaining their sovereignty by holding a monetary asset that is resistant to plunder, as well as reduce the financial feasibility of conquest in the first place,” Lamarre added.
BTC surged as much as 5% after Maduro’s capture to yesterday’s local high of $94,400. Today, BTC is trading at $92,600, a 3% increase from Saturday.
