Venezuela becomes the first country to launch a national cryptocurrency as it works towards salvaging its economy from the impact of sanctions and hyperinflation. The cryptocurrency named Petro is tagged to be backed by petroleum reserve of Venezuela. The cryptocurrency is a project innovated by the president of the country, Nicolás Maduro, as he announced on the 14th of August that the crypto would be in use as from 20th August.
The Venezuelan Petro, An Economic salvaging Cryptocurrency
Nicolás Maduro, the president of Venezuela, announced on the 14th of August of that the country will start using its cryptocurrency by the 20th of August. The cryptocurrency named Petro is the first national cryptocurrency in the world, an innovation adopted by the country to get is saved from the biting effect of hyperinflation and economic sanctions of the United States of America.
As noted of recent that by Robert Kiyosaki while he tagged cryptocurrency as the people’s money and foresee the crashing of US dollar, which is always controlled by the U.S. government against other currencies, a similar of his illustration has led to Venezuela, resulting to the Petro cryptocurrency. The present template of trade war makes the world economy volatile to economic crash as already predicted by Warren Buffet and Robert Kiyosaki. An alternative route to escape the economic crash would be resulting to cryptocurrency as Robert Kiyosaki opined.
The national currency of Venezuela has lost its value dues to inflation and economic sanctions. The coffee sold for 450 Bolivar before which is the national money, now costs one million bolivares and one million bolivar is the equivalent of 30 American cents. The United States also sanctioned Turkey recently that led to a drastic loss of value of the Turkish lira.
As the country battles economic sanctions and hyperinflation the national currency will be pegged against the Petro cryptocurrency for stabilization. An ICO of the cryptocurrency was held in February which the presale raised $2.3 billion worth of Petro, and the public offer raised $2.7 billion.
The cryptocurrency will be available for exchange into other major fiat currencies except for USD, and it can be changed to other cryptocurrencies. The central bank of Venezuela according to the president will be responsible for controlling the value against the barrel of oil. And the cryptocurrency will serve as means of exchange and trading between the country and its trading partners.
Even though the United States is against the cryptocurrency and the opposition in the country, it might just be the best solution to the situation of the country amidst substantial external debt. However, it remains good news for the cryptocurrency community.