VENEZUELA’S PETRO: NATIONAL CRYPTOCURRENCY THAT FAILED
Venezuela, whose Bolivaro national currency has lost much of its value due to high inflation over the past few years, has brought major economic difficulties. At the same time, cryptocurrencies are finally leaving a shadow and becoming a big trend worldwide. That is why the country has decided to create its own national cryptocurrency based on petroleum reserves - Petro.
The coin was intended to provide a safe haven from an almost useless bolivar, as well as to circumvent US sanctions. But Petro, launched in 2018, was not able to attract consumers, as Venezuelans became more interested in bitcoins and altcoins. Now Maduro has announced that he plans to return Petro.
MADURO’S PLAN TO REVIVE PETRO
On Tuesday, President Maduro issued a decree stating that airlines flying from Caracas must now pay for Venezuelan fuel via Petro.
I decree the sale of all fuel sold by the PDVSA for planes operating international routes be made in petros from now on.
He also ordered that the coin be used more widely throughout the country.
The fact that the United States banned the use of Peter and called it fraud, also did not increase its popularity.
One of Maduro’s orders states that the coin should also be used to pay for government documents such as passports. So far, even Venezuelans have avoided Peter as much as possible because many do not even know how to use it. As far as foreigners are concerned, the coin has not only been banned in the US, but fraud has been reported at many risk assessment sites.
Venezuelans, however, have shown that they are open to the idea of cryptocurrency using reliable, decentralized coins to combat hyperinflation.
MADURO IS DETERMINED TO MAKE PETRO A SUCCESS
2019 May. In the middle, bitcoin reported that Venezuela was trying to discuss a deal between Petro and Russia. As both sides had problems with the US, they discussed ways to eliminate the use of the US dollar in trade transactions.
Then, last December, Maduro also approved bonuses for civil servants and senior citizens, but he demanded that they be paid in Petra. According to experts, soon the coins were exchanged for bolivars, which were subsequently used to purchase other currencies. That is why the country's government has recently blocked the possibility of exchanging Petros for Bolivars.
To date, the fuel payment decree in Maduro does not contain detailed data, so it is not yet known whether the measures it has introduced concern only Venezuelan companies or international carriers. It is noteworthy that international relations with the country have been weak due to restrictions since the economic crisis in the country began seven years ago.
Against this backdrop, Maiquetia Airport, the country's capital, is still served by several companies, including Iberia, Panama Copa Airlines, Portuguese TAP, Air France and Air Europa. However, Venezuela does not offer direct flights to the United States due to sanctions.