Venezuela, India, Japan, and Zambia are adopting cryptocurrencies and reforms to strengthen their economies and stabilize currencies. Discover how each country approaches these challenges.
The world is rapidly evolving under the influence of cryptocurrencies and financial reforms. Many countries are adapting to new economic realities by integrating blockchain technology, Bitcoin, and stablecoins to strengthen their positions on the global stage and stabilize national currencies. In this article, we explore the latest initiatives from Venezuela, India, Japan, and Zambia, each taking a unique approach to shaping their financial future.
Venezuela: Bitcoin as a National Reserve
Maria Corina Machado, the leader of Venezuela’s opposition coalition, has proposed using Bitcoin as a strategic asset to restore the country’s financial stability. Hyperinflation and economic crisis under the rule of Nicolás Maduro have severely devalued the national currency. Machado believes that Bitcoin could serve as the foundation for Venezuela’s new financial direction, protecting citizens’ savings and helping to restore the looted national reserves.
A Bitcoin fundraising campaign, organized through the Human Rights Foundation, is aimed at supporting peaceful protests and democratic efforts in Venezuela. This initiative also seeks to bypass sanctions and financial restrictions imposed on the opposition. Venezuela could join El Salvador as one of the few countries to incorporate Bitcoin into its national reserves.
India: Reopening Doors to Cryptocurrency Exchanges
India’s Financial Intelligence Unit (FIU-India) is considering allowing offshore cryptocurrency exchanges to resume operations in the country. Previously, major platforms like Binance and Kucoin faced sanctions for violating anti-money laundering regulations. However, after paying fines and complying with the necessary requirements, they have been permitted to re-enter the Indian market.
FIU-India is now reviewing requests from four additional offshore cryptocurrency exchanges. These companies will be allowed to operate only after a thorough evaluation of their compliance with Indian regulations. The authorities are focused on ensuring transaction transparency and full visibility to combat illegal money laundering schemes.
Japan: Payments Through Stablecoins and Blockchain
Japan’s largest banks — MUFG, SMBC, and Mizuho — are developing a new system for international payments based on blockchain technology and stablecoins. The Pax project aims to simplify and accelerate cross-border transactions by eliminating the need for correspondent banks, which often slow down the process.
This system will be integrated with the SWIFT international payment network, allowing users to make transactions through traditional banking infrastructure while stablecoins work behind the scenes. The Pax platform will significantly speed up and reduce the cost of international payments, enabling 24/7 operations. Testing is expected to begin soon, with a full launch planned by 2025.
Zambia: Dedollarization and Currency Stabilization
Zambia has announced a dedollarization plan aimed at strengthening its national currency, the kwacha. According to the country’s central bank governor, Denny Kalyalya, the use of foreign currency within the country hinders effective monetary policy and exacerbates inflation. Over the past year, the kwacha has depreciated by 22% against the dollar.
The Central Bank of Zambia is still consulting with market participants, but the main goal is clear — to reduce dependence on the dollar and strengthen the domestic financial system. However, the plan has faced criticism, given the ongoing recovery from the country’s debt default and severe drought, which has impacted key economic sectors.
Conclusion
Each of these countries — Venezuela, India, Japan, and Zambia — is developing unique approaches to tackling financial challenges. Venezuela is turning to Bitcoin, India is reviving cryptocurrency exchanges, Japan is integrating blockchain for international payments, and Zambia is working to stabilize its national currency by limiting the use of the dollar. These examples illustrate that the future of the financial world is increasingly intertwined with innovations in cryptocurrencies and blockchain technology.
