Photo Cred To Pavlos Giorkas Via Flickr
Venezuela Cryptocurrency Petro
In different parts of the world, we have seen the growth of the blockchain technology, as well as the use of cryptocurrencies for different purposes and in various industries. It is quite interesting to note that some years ago, a lot of governments were against the adoption of cryptocurrencies, probably because they did not understand it at the time, or because they had no idea the benefits it had. Whatever the case may be, we have seen a lot of critics change their minds, and speak well about cryptocurrencies. Furthermore, governments that banned the use of crypto, are beginning to go easy on the restrictions, and in some cases have begun to encourage their citizens to use cryptocurrencies.
Venezuela is one of those countries that are heading the crypto way. It is even more interesting to know that the President, Nicolas Maduro has his cryptocurrency called ‘Petro’, and amidst the controversy surrounding the coin, he has ordered the top banks in the country to facilitate the use of his cryptocurrency. Furthermore, included in the directive is the order to make Petro available to customers.
Central Bank of Venezuela
This news was made known by the Ministry of Finance in Venezuela, via a tweet at the event to celebrate Bank of Venezuela’s 10th anniversary. The President who gave the express order said the transaction counters needed for Petro to function, be opened in all the agencies affiliated with the Bank of Venezuela.
At the moment, there are no clear details about the directive, however, it is presumed that the move was made in order to encourage the use of cryptocurrencies, and most importantly to create an increased use of Petro for deposits and purchases by Bank of Venezuela customers. It is safe to say that the move is a recent effort by the president to get various institutions in Venezuela to increase the use of his cryptocurrency in the country.
It may interest you to note that President Maduro had the Petro token launched in 2018, and it was supposed to be an initiative that would be used to boycott economic sanctions, and thus made the order for banks to adopt his token, because according to him, the token is pegged with the oil reserves of the country, including companies owned by the state. Furthermore, he has made it a mandate that the petro token be used for passport payments, which looks like a way to make it difficult for people to leave the country in search of greener pasture, because the token is not readily available.
New Venezuelan Currency
In addition, the token is connected to the country’s new fiat currency, while salary and pension systems have been pegged to the token. There has been mixed reactions to the news, with a greater populace bothered about the scarcity of the token, and how it hampers their plans to pay for their passports with fiat currency. The true intentions of the President concerning the token remain unknown at the moment, but this move could also play a role in the economy of the country.