Venezuelan President Nicolas Maduro announced yesterday the creation of an oil reserve-backed cryptocurrency "Petro" to fight the economic crisis with hyperinflation.
As Reuters reports, Maduro announced the launch of "Petro" on a TV program, but mentioned few details for the currency itself.
The Venezuelan cryptocurrency is said to be supported by oil, gas, gold and diamond reserves. Petro's goal to help the country overcome the financial "blockade" is stated in a government statement on the official website.
The state-owned fiat currency, the Bolivar, is currently in free fall. Recently, the government issued a new 100,000 Bolivar note. As the New York Times reported, extreme Bolivar inflation has led to a sharp rise in consumer prices. In addition, basic needs such as food and medicine are scarce.
The worsening of the crisis also comes as a result of the US sanctions imposed this year by the Trump government, which targeted Venezuelan officials, executives and the country's debt securities.
The announcement of "Petro" is also so interesting because many residents of Venezuela have Bitcoin mining and the purchase of Bitcoins as a store of value to save their assets from inflation or to earn money by mining. In this respect, the introduction of the Petro may also curb the spread of non-state cryptocurrencies. Whether this succeeds, but at least remains to be doubted.
Thank you for reading!
Don't forget to upvote, resteem and follow me for more content & contest
Tradingview, https://www.tradingview.com/u/Tradewonk/
Instagram, https://www.instagram.com/tradewonk/
Or any of my other social media channels. Please consider getting your
free account here on Steemit.
"Join the adventure and be inspired." - Tradewonk
And how are they going to create capitalization for their new digital currency? Creating is easy but making it work is difficult.
Same thoughts
They are making head way in their economy, its a wise move by their leaders.
thank you for writting
My pleasure!
The government is desperately trying to get some way to finance themselves since our USD reserves are getting collapsed by the payment of the foreign debt since we suffer a partial default in late November, this article is laking in information, i will write my own.
please do, I would like to hear more about it, thanks
I wish Venezuela good luck with their new crypto currency. But, the question arises. If Venezuela could not provide stability to Bolivar, then at the expense of what it can ensure the stability of the crypto currency Petro?
It will be very difficult, The US is waging a stealth war against them. I am hoping the blockchain will be the tool to save them.
To tell the truth, only the population it is a pity. The government is justly punished.
I agree goverments are a big source of suffering, my they all meet their just fate.
Venezuela government is probably doing that in order to bypass the international sanctions and/or in order to launder their drug and other illegal money. It’s just another shady scheme.
Then everything is explicable. If ensure the stability of drugs, it will be one of the most stable cryptocurrency.
It could be stable, although cryptocurrencies are meant to be decentralized right?, a government controlled (centralized) and backed by oil, gas, gold and diamond reserves has nothing to do with crypto as far as I am concern. Still it’s surely an interesting project, although trusting on this criminals has no sense after what they have done
If only Venezuelans received their salaries through crypto and not bolívares in free fall
You are right 100%
Thanks haha I followed you!
Agree!
I upvote , follow and resteem
Thank you very much!
Venezuela had to try something they have oil but no Rothschild central bank. The US will subvert all their efforts to save their economy. They really are not the simpletons or socialist we are led to belive in main stream media. I will be activly seeking to BUY when they hit the market.
Could be a good idea. Thinking about the same.
Do you mind a simple question? What is the easiest way to put USD into a crytpo account. I have tried coinbase and they verify my debit card by sending deposits to my bank account, small ones that I have to know the amount of. However my "bank" is the smallest credit union I could find for boyocott reasons, and they cant find the deposits, Looking to turn dollars to crypto and advice would be appreciated.
I use bitstamp.net and just making a normal SEPA deposit instead of credit card. It takes around 3 days before the money is there, but it's much cheaper than credit card, almost no fee.
SEPA?
fantastic!! bravo Maduro!!!
venezuelans, HODL!!!!!
:)
bastard americans they want slaves not alliances
Exactly
Upvoted @tradewonk ...bless
Thanks buddy.
THE PETRO IS GOING TO MAKE THE ONLY CRIPTOMONEDA WITH THE SUPPORT OF THE PLANET, THROUGH THE WORLD'S LARGEST PRETOLEO RESERVE, COLLECTS, GOLD, AND ANY MINERAL THAT EXISTS IN VENEZUELA
I am from Venezuela, Young and System Engineer, Born in Barinas State; I am a Dreamer and I like your Post, since Venezuela is in an Economically Critical Situation, so the President Decides to Create this New Currency, the Superintendence of this Currency has already been created.
Regards..
What is the similarity between oil and currency?
This post has received gratitude of 11.13 % from @appreciator thanks to: @tradewonk.
This post has received a 8.84 % upvote from @buildawhale thanks to: @tradewonk. Send at least 1 SBD to @buildawhale with a post link in the memo field for a portion of the next vote.
To support our daily curation initiative, please vote on my owner, @themarkymark, as a Steem Witness
Good luck, Venezuela...I have followed some related news for the past few years - actually, ever since this crisis started. I feel really sorry for everything that happened to that country economically and socially. I hope they somehow get better and survive, be it a result of this cryptocurrency involvement or not.
Thank you well said, much of our mainstream media's purpose is to dehumanize our neighbors in other country. Very Wrong. I wish them the best and will be there as a tourist and friend as soon as I can.
Hi , congratulation!
isn't there already a cryptocurrency called Onix?
I understand it is also from Venezuela, please correct me if I'm wrong
Hi, I'm a lawyer from Venezuela. I would like to share with you my legal advice about the Petro.
https://steemit.com/cryptocurrency/@rguia/a-legal-advice-about-petro-the-venezuelan-cryptocurrency