Will Petro help Venezuela in gaining economic stability? The government of Venezuela released oil-backed cryptocurrency called Petro in the international market. This is one of the first cryptocurrencies which a government designed and managed.
One of the Paper authors cited that “The petro will be an instrument for Venezuela’s economic stability and financial independence, coupled with an ambitious and global vision for the creation of a freer, more balanced and fairer international financial system,”
Moreover, Petro will use as a tool for Economic recovery, growth and development, an investment vehicle and also as a way for domestic transactions. When the country fell into a deep economic crisis following a chaotic political switch to socialism this decision was made
Nicolás Maduro said in a televised address to his nation that the Petro is practical as it is with country’s oil and precious metals like gold, diamond, iron, and aluminum reports Venezuelanalysis.
All Venezuelans have got access to the Petro which will allow them to make international trade. Due to a sanction by the White House, the U.S. citizens are banned from buying Petro .
Moreover, Petro coins will be a legal substitute to dollars in real estate deals. Also for paying goods such as airline tickets, hotels and other groceries. The country is ready to treat Petro as it’s fiat currency by making banks and businesses to accept it. Maduro has a strong belief that Petro will impact positively in making Venezuela’s economy stronger and also act as the incubator for a new and stronger economy.
Maduro also added that “The National Plan of Cryptoactives of Venezuela, will last 10 years. This is going to be the epicenter of the development of a new economy in the country.”
Although the government is putting a lot of efforts to make petro popular and ultimate medium of transactions, it seems that the country’s citizens have different plans. Who are investing their money in Bitcoin and other cryptocurrencies to secure their money from the Bolívar’s inflation?
According to volume tracker CoinDance, Venezuelan trading in bitcoin has reached an all-time high last week. Also, the first couple of days this week have exceeded last week’s high. Venezuelan exchange approximately $620 billion Bolívar’s for Bitcoin last week. This surpassed to approximately $640 million Bolívar’s for Bitcoin this week alone.
Beside gaining popularity of Bitcoin, Dash is also gaining greater acceptability in economic thundering country Venezuela.
Tha CEO of the Dash group, Ryan Taylor has told that “We are seeing tens of thousands of wallet downloads from the country each month… Earlier this year, Venezuela became our number two market even ahead of China and Russia. These are of course huge into cryptocurrency right now.”