Venezuela is a troubled country, their economy is like a powderkeg, you know the reasons. Sanctions imposed by the US.

Venezuela is the 6th largest producer of crude oil. To keep up the country's fuel requirement, Venezuela made swap agreements with refineries. The National petroleum company supplies the refinery with crude and gets back diesel or gasoline, which they sell to the populace.

But the US imposed sanctions made it impossible for Venezuelan companies to transact in major banks or financial institutions.

We all are very familiar with decentralized finance or Defi. Earlier today I posted about countries that released their own natural cryptocurrency, now Venezuela launches its own decentralized finance system.

The government, recently introduced BDVE, a platform in which people can swap their ERC-20 tokens.

The president of Venezuela, Nicholas Maduro claimed that the new move will strengthen cryptocurrencies including petro, the state launched national cryptocurrency.

Petro launched in 2018 failed to gain expected traction after, the Donald Trump administration prevented us from residents or people with business interests in the US from trading petro.

The New Decentralised system is introduced by the pressure from the national oil company since they were unable to source enough diesel or gasoline for the country. 

This week Maduro's regime managed to secure diesel from Iran, another country sanctioned by the US by paying in gold.

The new Web portal BVDE.io claims it as the easiest way to buy and sell financial assets. Sources indicate that the license is issued as a trial, and it will be made permanent if successful.

Even though Maduro calls his new venture as a decentralized exchange, the "decentralized" factor and its effects should be closely evaluated, since both petro and the new exchange are likely to be controlled by the government.