Venezuela’s crazy currencies | the Petro cryptocurrency & the hyperinflationary Bolivar Soberano
President Nicolas Maduro gave a direct order to open operating tables for working with the national cryptocurrency El Petro in all branches of the Bank of Venezuela.
During the celebration of the tenth anniversary of the nationalization of Banco de Venezuela, the head of state announced a new stage in his plan to aggressively promote the digital currency. The solution involves the organization of points of acceptance of cryptocurrency in each of the 790 branches of the largest bank in the country.
President’s statement triggered an increase in the El Petro rate on local exchanges by 25%, to 0.005 BTC.
Last month, Nicolas Maduro also decided to distribute coins to one million young citizens, in pre-opened wallets, and teach them how to handle the new asset class. To this end, the government allocated approximately $ 92.5 million in bolivars to the Digital Bank of Youth and Students. Wallets will transfer immediately with the credited coins, but the amount gift funds were not disclosed.
Initially, El Petro cryptocurrency was developed as a tool for international settlements, bypassing US economic sanctions and stabilizing the economy. However, after being discredited by international experts, other countries refused to work with her. Therefore, the government decided to correct the course and popularize the digital asset domestically in order to foster the development of advanced financial infrastructure..
Another country suffering from US sanctions, Cuba, has recently also started to consider the possibility of using cryptocurrency to combat the economic blockade and crisis.
text: Ivan Malichenko, photo: Venezuelan Ministry of Finance