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Venezuela hopes to emerge from crisis thanks to national cryptocurrency

Venezuela is in the midst of an Economic Crisis, and the latter lasts far too long. However, the authorities have just had an idea: they want to support their future Digital Currency, accepting it as a method of payment for taxes. What, according to the Minister of Economy, would finally come out of the terrible economic crisis.

Get out of the economic crisis at any cost

Venezuelan President Nicolás Maduro made the decision to create Petro, a Venezuelan digital Currency. Of the 100 million Petros, 38 million will be offered to institutional investors. The sale will begin February 15 and should, according to the government, raise $ 1.3 billion. The next phase will be to offer 44 million Petros to the population, for a total of 2.4 billion dollars. The remaining 18 million Petros will be distributed to the government and advisers.

What is Petro?

It is a digital currency with a  guaranteed minimum value of 5.3 billion barrels of crude oil. Of course, the ‘wedges’ can not be exchanged for oil, but they are convertible into fiat money, and that’s just the point! Because the Petro could help Venezuela to cope with the shortage of dollars. Indeed, the Venezuelan currency lost 400% of its value against the dollar last year.

In addition, the country faces the financial blockade of the United States because of a default. It is therefore logical to note that the inhabitants of Venezuela are turning to cryptocurrency. Moreover, there is an incredible increase in demand for Bitcoin, citizens turning away from the national currency.

The idea that makes a controversy

If President Nicolás Maduro seems convinced that Petro is the perfect solution, the opposition is less sure. Thus, some members of Congress are totally against, like Jorge Milan, a Venezuelan deputy, who said: ”  This is not a cryptocurrency. This is a Venezuelan oil futures sale. This has been thought to facilitate corruption “

However, there is no question for now of giving up the Petro. On the contrary, even if the president tries to convince Qatar to invest, and has proposed the establishment of a structure to oversee its digital currency, the future will tell us if the politician has seen right

The post Venezuela hopes to emerge from crisis thanks to national cryptocurrency appeared first on 9 to 5 Live.



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