The world of cryptocurrencies has seen many ups and downs recently with several proponents in the space pushing hard for the mainstream adoption of digital assets. One unlikely candidate has been Petro, the state-backed cryptocurrency created by the Nicolas Maduro-led Venezuelan government.
The cryptocurrency has drawn a lot of flak from its citizens as well as bodies from around the globe, the main issue pertaining to the lack of oil that Petro is supposed to be linked to. Another major issue in Venezuela is the rampant rise of inflation and the growing dissidence in the public forum.
The latest update on Petro from the government of Venezuela states that the value of the cryptocurrency will be hiked to 36,000 sovereign bolivars. The state said that the increase and a higher minimum wage is aimed to combat the “criminal dollar”. In a video, Maduro stated:“I want us to create a great alliance to produce and create new formulas of investment and financing.”
The newly proposed plan is to increase the minimum wages by 300 percent to 18,000 bolivars per month, while simultaneously increasing the value of Petro by four times. The President has said that this new framework will stabilize the crumbling economy, an economy that analysts predicted would touch the rate of 1 million percent in 2018.
Criticisms against the new model are far-ranging, involving economists and opposition leaders. Juan Guaido, the leader of the Nation Assembly of Venezuela, had said:“Today, Nicolas Maduro mocks the Venezuelan people, once again, after taking economic measures that only bleed more in the pocket of Venezuelans. The Venezuelan economy does not improve with an increase in the salary.”
Elsewhere, Asdrubal Oliveros, the director of Econalitica, a research organization, gave his opinion by saying:“There is no intention to rectify the direction of the economy so it will continue on its deteriorating path in 2019.”
Petro was also in the news recently when Nicolas Maduro’s government filed a complaint in the World Trade Organization [WTO] against the sanctions taken by the United States. The complaint read:“The United States has imposed certain coercive trade-restrictive measures on the Bolivarian Republic of Venezuela in the context of attempts to isolate Venezuela economically.”
Venezuela’s biggest bank forced to accept Petro nationwide
- The strategy is part of a plan to promote the use of crypto throughout the country.
- The Venezuelan crypto-ecosystem was optimistic about the announcement.
Nicolas Maduro, the president of Venezuela, has ordered the country’s biggest bank, Banco de Venezuela, to accept Petros in each of its 790 agencies across the country. Maduro stated:
“I am giving the explicit order to open Petro transaction desks at all Banco de Venezuela agencies.”
As a result, Petro (PTR) rose 25% on local exchanges. The strategy is part of a plan to promote the use of crypto throughout the country. President Maduro announced the decision to distribute crypto wallets to one million young citizens and to educate them in areas related to crypto adoption.
The Venezuelan crypto-ecosystem was optimistic about the announcement. José Angel Alvarez, president of the National Cryptocurrency Association (ASONACRIP), said:
“It is a bold and correct decision to move forward towards a hybrid economy where the fiduciary currency of a country competes face to face with cryptocurrency.
We should also note that Banco de Venezuela is the most important bank in the Venezuelan financial system and has the most significant number of clients. With this decision, this bank would become one of the exchanges with more physical offices in the world”.
Alvarez also added that focus should be put more on crypto educationinstead of airdrops if the government wants this to succeed:
“The greatest challenge is the spread of knowledge; also, the Petro needs to make its way down to ordinary citizens; however, there have already been positive trials in which many ordinary Venezuelans started to see with good eyes how their Petro savings in the Patria System have preserved the value of their money…..The future is promising, Venezuelans paying and collecting salaries in petros and from petros to bitcoins will be a single step with which Venezuela will continue in the vanguard to put an end to world financial hegemony.”
Venezuela’s Maduro Orders Top Bank to Make Petro Available to Public
Venezuela’s President Nicolas Maduro has ordered one of the nation’s largest banks to allow customers to access to his controversial cryptocurrency, the petro.
The Venezuelan Ministry of Finance tweeted the news late on Wednesday at an event marking the tenth anniversary of the Bank of Venezuela (BoV), quoting Maduro as saying (via informal translation):
“I give the express order for transaction counters for The Petro to be opened in all Bank of Venezuela agencies.”
While there are no other details available so far, the move is presumably aimed to allow BoV customers to buy and deposit petros.
The move comes as the latest effort by the president to force Venezuelan institutions to boost use of his crypto pet project.
Marduro launched the petro early last year as a means to sidestep economic sanctions and has since ordered banks to use the token – which is claimed to be pegged to the country’s rich oil reserves – as well as state-owned companies.
He has further mandated that payments for passports should be made in petros – a possible means of slowing the exodus of people from the troubled nation, as petros are not readily available to the populace.
The petro has also been tied to the new national fiat currency, the sovereign bolivar, and even pegged pension and salary systems to the token.
Venezuelan President Maduro orders national bank to accept the Petro
It is being reported by ST Market that Venezuelan President, Nicolas Maduro, has ordered Banco de Venezuela to begin accepting the Petro, the national cryptocurrency that has seen modest adoption.
It is reported that Maduro announced the development during a celebration for the 10 year anniversary of the adoption of Banco de Venezuela as the country’s national bank. Shortly after the announcement, the Ministry of Finance tweeted out a statement supporting the notion. The tweet mentions “the express order to open Petro desks in all the branches of the Bank of Venezuela.”https://twitter.com/MinEcoFinanzas/status/1146566606711074817
Maduro has been attemtping to push the Petro on the nation for a while now. So far it seems general adoption is slow, despite efforts to put a regulatory framework in place to help the nations cryptocurrency infrastructure grow.
It is still unclear what the fate of the Petro will be, but if the government keeps pushing it onto the public, it may eventually become the standard. In any event, stick right here with Chepicap for all Petro updates!