Monday, July 15, 2019

Venezuelan Government Anchors Its Minimum Wage To Their Cryptocurrency, The Petro

Cryptocurrencies have been tested as a mean of controlling monetary policies in some essays, a thing that would be more difficult or even impossible with normal fiat money. Venezuela has been on the verge of innovation since they outed the first national backed cryptocurrency, the Petro. The Petro was regarded as the biggest Initial Coin Offering at the time of its realization. But now the Venezuelan Government wants to go further by anchoring the minimum wage to the value of its cryptocurrency, the Petro.

The President of Venezuela, Nicolas Maduro, made the surprising announcement late this evening when he addressed the citizens of Venezuela in a speech where he made important economic announcements. He also addressed the subject of gas prices and said that he would give a direct subsidy via a special card that citizens with cars should have. He declared:

“Anchoring the minimum wage to the value of the Petro will give stability to the acquisitive power of the people and will also bring stability to the sale of goods.”

Thi announcement is made when the local currency, the bolivar has been on a devaluation rampage this week, and when inflation is skyrocketing badly. Venezuelans previous minimum wage was of less than a dollar monthly, but now with the ne system anchored to the Petro it would be of about half a Petro, or like $30.

The value of the Petro is tied to the cost of a barrel of oil from Venezuela. Lots of people say that this is an inconsequent measure because the petro is not being even traded in international exchanges, and some exchanges like bitfinex have told that they wont ever lits the petro due to “lack of interest”. Though it is unclear the way that this will result, it is a historic victory for a cryptocurrency to be used as an index for the minimum wage of a country.

Related Article:  Venezuela's Cryptocurrency Endeavour
 

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