Minister of Habitat and Housing in Venezuela, Ildemaro Villarroel, has declared that the nation’s administration is planning to use the national cryptocurrency, Petro, to finance the development of houses for the homeless. According to reports by Criptotendencia, 33 organizations have begun technical, financial, and logistical tests to start the construction process.
With the aim to make quality lodging readily available to the destitute, the Venezuelan Government will reportedly fund the “Great Mission for Venezuela Housing (GMVV)” project with Petro. The GMVV site indicated that the legislature had completed more than 2 million houses since the start of the initiative seven years ago. The minister said that:
“Together with the governors, we are reviewing the plans that we will begin in the second quarter, in this second quarter GMVV will have an injection of financial resources, which this year will be protected and established with [the] Petro.”
The President of Venezuela, Nicolas Maduro, endorsed a 75 billion bolivars ($75,000) and 909,000 Petros ($6,700) budget in order to fund the housing project. The minister noted that as a subsidizing source, the petro creates “a protective shield.” Although it is difficult to envision how such a little whole of such a troubled currency could give much insurance, Villarroel indicated that more petro-upheld financing would possibly come before long.
Utilizing Petro for Other Government Projects
The president had reportedly endeavored to utilize the digital currency for ventures inside the nation and other dealings in the past. In April 2018, Venezuela was consulting with Russia to buy vehicle parts using the digital currency. Also, in May 2018, Maduro declared the notice for a Petro-financed crypto bank to help youth and understudy activities.
This shows that the housing project is not the first government social activity in Venezuela supported by the national oil-based cryptocurrency.
In January 2018, Venezuela’s Congress prohibited the Petro calling it an “effort to mortgage the cash-strapped country’s oil reserves illegally,” and that the virtual currency is “tailor-made for corruption.” The reason the parliament advised financial specialists against venturing into petro is that it could be viewed as pointless once Maduro is out of office.
The body included that the petro damages the Venezuelan constitution necessity for legislative approval of all loans. While the Venezuelan political and conservative emergency has developed as of late, with swelling of the bolivar outperforming 25,000 percent, Venezuela has seen a blast in cryptocurrencies.
Bitcoin exchange rate has drastically increased this year, as the volume of Venezuelan Bolivar to Bitcoin trade rose by 138% between March and April, and by 39% more from April to May in the same year.
US President, Donald Trump, added to the skepticism encompassing the Petro when he signed an official request prohibiting American financial institutions from having anything to do with the cryptocurrency, calling it an endeavor to “circumvent U.S. sanctions by issuing a digital currency.”