Friday, January 28

Maduro promotes a digital currency for Latin America

Key facts:
  • Maduro wants to convert the SUCRE into a regional digital currency to replace the dollar.

  • The policy would be applied in Venezuela, Uruguay, Cuba, Bolivia, Ecuador, among other countries.

Nicolás Maduro, the president of Venezuela, seeks to convert the SUCRE into a regional digital currency that progressively replaces the dollar. This policy would apply to some Latin American countries such as Uruguay, Cuba, Bolivia, Ecuador, among others. This was announced by the president on December 14 at a meeting in Havana before the ALBA (Bolivarian Alliance for the Peoples of Our America).

The SUCRE is a currency created in 2009 by the countries that make up the ALBA to facilitate money transactions and break the hegemony of the dollar. Twelve years after its launch, Maduro proposes convert it into a digital currency as part of the foundational strategies of economic, financial and commercial development.

The ALBA member countries are nine: Venezuela, Cuba, Bolivia, Ecuador, Nicaragua, Dominica, Saint Vincent and the Grenadines, Antigua and Barbuda, and Saint Lucia. In turn, there is Uruguay that, although it is not a member of the association, issued a request in 2013 to join the SUCRE currency application.

Nicolás Maduro expressed that digitizing SUCRE goes hand in hand with the search for concerted efforts to improve the economy of the alliance countries. Also, remember that its base is focused on re-boosting the joint production of food, oil, gas and lithium.

Venezuela, Uruguay, Cuba, Ecuador and Bolivia are some of the countries where the SUCRE digital currency would work.

Interest in regional currencies is growing: SUCRE in Latin America and digital EURO in Europe

The SUCRE, which stands for the acronym for “unitary regional compensation system”, It works in Latin American countries that make up ALBA in a similar way to the euro in the European Union. Although both were created as currencies for regional use, there are some issues that differentiate them.

Something different between the two is that in Latin America each country also has its own national currency, while in Europe many nations only use the euro. That is, the regional currency. This has made the euro widely used in Europe, unlike the SUCRE, which has not managed to become so popular in Latin America.

However, there is something that now unites them both. Nicolás Maduro’s intention to convert SUCRE into a digital currency corresponds to the same initiative that exists on the other side of the ocean. As reported by CriptoNoticias, The Central Bank of Europe announced that it will investigate the adoption of the digital euro for the next two years.