Nicolás Maduro, President of Venezuela, has confirmed that Petro is now officially the second accepted national currency of the country. Reports ABC News, according to the Oil-based crypto currency will be used as a Form of legal means of payment.
In a televised address, Maduro announced that the Oil company PDVSA will be the first company to Petro as a unit of account is use. The government is also planning a new salary system on the Basis of the Petro. Also, Petro-bound, price structure for Goods and services should be introduced.
From next Monday, Venezuela will have a second unit of account, which is based on the price of Petro. You will act as the second accounting unit and for the Oil industry mandatory.
Maduro has high hopes in Petro as a second currency. He described the Implementation of the currency as “a substantial improvement in the income of the workers”.
But what is the Venezuelan Petro?
Petro is the first crypto currency in the world, which is issued by a Federal government. Maduro hoped for at the beginning of this year that Petro could be the solution for the downturn in the economy by the U.S. sanctions will work to ensure that the Bolivar fell to a record low. The sanctions prevented U.S. banks and U.S. investors to take on debts from Venezuela, and thus bring new money into the country.
As the Bolivar was almost worthless, Venezuela was victim to Hyperinflation. To illustrate the dimensions: A Venezuelan Reddit User was able to buy using a donation of 29 Nano (approx. 2,41$) over 100kg of food. Due to the Hyperinflation, the donation was worth more than a month’s salary.
Another example: If you were to exchange$ 50 in Bolivar, so you’d need a backpack to transport the Money sum of money.
Reddit User buys 100kg of food for less than 3 dollars.
So it’s no surprise that Petro, which is for the payment of public needs, such as. Taxes can be used to great favour. Within 24 hours, the currency is about 735 million US has implemented-dollars – at the same time, the government published the white paper and the instructions on how the currency can be acquired. The price of Petro will address the price of a Barrel of Venezuelan Oil from the day before.
An old, abandoned, oil Drum.
According to the Central Bank of Venezuela (BCV) will depend on the price of the Bolivar, from the price of the Petro-and, in turn, from the price of a Barrel of Venezuelan Oil. The President confirmed that some of the banks, including BCV, new Bank notes.
According to the white paper, Petro meets officially a national currency can be easily exchanged into other currencies, like the Euro.
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