Venezuela’s President Orders Banks to Adopt the Cryptocurrency Petro

To Adopt the Cryptocurrency Petro

To fight the negative effects of his presidency’s economic policies, Nicolás Maduro has instructed Venezuelan banks to accept Petro as a digital currency. The Venezuelan president has also increased the minimum wage, gasoline price and VAT in his last economic reform.

Venezuelan Banks Forced to Accept Petro

According to a resolution of the Sudeban Banking Supervision, which was reported today by Channel News Asia, all banks in Venezuela have to adopt the digital currency Petro. The move announced yesterday aims to alleviate the economic crisis that has plagued the country for several years.

The situation in Venezuela seems to be only worsening, and the International Monetary Fund (IMF) estimates that the inflation rate will reach one million percent this year. Millions of people have fled the country to escape the crisis. Those left are often turning to the safe havens of digital currencies, such as Bitcoin and Dash, to protect what they have left of their wealth.

Further Measures to Improve The Current Situation

The new economic reforms of the central government include an increase in the required minimum wage by 3,400 percent, an increase in the VAT rate from 12 to 16 percent and an increase in the price of gasoline.

In addition to these measures, Maduro is launching an offer of gold-backed bonds. It is hoped that this will promote responsible austerity strategies for the people of Venezuela. The initiative will allow citizens of the country to buy “Lingoticos” (small bars) and will start in mid-September. On a state television Maduro opined:

“Nobody can say that gold loses its value”

The Socialist President was promoted to power for another six years in the month of May this year. However, the election itself has been controversial and many in the international community would call it fraudulent. Maduro hopes that by fixing the currency on oil, a form of financial stability will be possible.

The cryptocurrency Petro was launched in the month of February this year. Recently, Maduro has mandated to become the country’s second national currency. The controversial digital currency is allegedly backed by the country’s oil reserves. There is also a rumor that the initiative is a Russian-led experiment to circumvent US economic sanctions. But the people of Venezuela are also using other options. Earlier this month, it became known that the cryptocurrency Dash is gaining popularity in Venezuela. Even Subway and Calvin Klein now allow paying with the digital currency. The Dash Foundation has invested around one million dollars in the country to educate the public about the safe use of digital currencies.

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