Venezuelan cryptocurrency Petro is coming
Venezuela, which has been disturbed by the pressures of hyperinflation in recent years, is preparing to issue an oil-backed state crypto currency in order to support its struggling economy. Venezuela cryptocurrency Petro is coming. The announcement came as a result of the massive adoption of Bitcoin in the country.
The statement by President Maduro is the leader’s ’21. He was greeted with the cheers of the audience as he said that ‘the century has come’. Opposition leaders, however, argue that the cryptocurrency requires congressional approval and will likely never see the light of day.
US sanctions
The rapidly depreciating Venezuelan currency Bolivar is partly a result of financial sanctions imposed by the United States. Maduro hopes that cryptocurrency will allow money to be transferred to the country through channels that other governments cannot reach. Maduro said the Venezuelan cryptocurrency Petro will allow the country to:
“Advance in monetary sovereignty, conducting financial transactions and overcoming the financial blockade.”
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While such a cryptocurrency could potentially offer a means of refuge for the country’s government, linking it to oil, gas and diamond reserves can become extremely complex. Some opposition leaders argue that Maduro could repay outstanding international debt in government-issued currency.
cointelegraph
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