Monday, June 17, 2019

Venezuelan Government to Finance Housing Program Using Petro Cryptocurrency

The Venezuelan government is on a “Great Housing Mission” and plans to build 3 million homes for its citizens before the end of 2019. These houses will be funded with the country’s own virtual currency, Petro which is backed by oil. This was decided upon in the first government meeting held early this year.

Enhancing the Gran Misión Vivienda Venezuela

Based on a media outlet’s report, the aim of the project is to enhance the Gran Misión Vivienda Venezuela (GMVV) with the use of Petro. Therefore, under the administration of President Maduro, new apartment blocks will be built to help the masses. In line with that, over 1 million plots of land have been allocated to actualize this project.

The Government in the past delivered 2.5 million homes to professionals, the young and senior citizens of the country. Also, 1 million homes were renovated and this is not the end given that plans have been made to launch 3 million homes before 2019’s end. This will be made possible through a collaboration between the government and the country’s Ministry of Housing.

Enough Funds and Building Materials to Embark and Complete Project

According to the government, there are enough money and construction materials to back up the project. Ildemaro Villarroel, the housing minister said that completion of this project will consolidate the independence of the Venezuelan economy. The minister in this regards has encouraged companies to accept the Petro cryptocurrency as a way of supporting its plan.

Generally, this is one more way Venezuelan leaders are trying to alleviate the economic challenges the country is currently faced with. That is, by striving hard to ensure the success of its digital currency. It can be recalled that Petro was launched in October last year and it is also backed by the country’s fiat currency, the bolivar.

Citizens’ Inability to Trade With Petro

Citizens, on the other hand, are yet to receive the tokens and the cryptocurrency cannot be used to make purchases. BTCNN had reported in December that the government paid Christmas bonuses to its Pensioners in form of Petro. But then, this did not go down well with the senior citizens of the country. These pensioners complained that it took a lot of time to gain access to their funds.

They had also pointed out the complex processes involved in converting the cryptocurrency to fiat. There was also the problem of finding merchants in the area who will be willing to exchange the digital asset for goods. Hopefully, this new project will encourage the use of Petro in the country.

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