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Petro Announced as Official Currency in Venezuela

For many years already Venezuela has faced a number of economic difficulties, the solution of which is actively being handled by the administration of President Nicolas Maduro. One such decision was the release of Venezuela’s own crypto currency “Petro“ in January this year. And since August 20, two official currencies have been received in the country: bolivar and petro, which will have the same market value and will be used interchangeably.

Petro or Petromoneda is a crypto currency developed by the Venezuelan government, launched in February 2018. Announced in December 2017, this digital asset is allegedly backed up by oil reserves and other minerals. Based on the NEM block chain, the new crypto currency should prevent a sharp fall in the exchange rate and become a way of circumventing US sanctions to gain access to international financing.

According to media reports, in a speech at a press conference, Maduro said that the next Monday, Venezuela will have a second official currency. According to him,

The new currency system should stop speculation on the Venezuelan currency. In his tweeter account, the president wrote that a new system of pay and pricing of goods and services will be assigned to Petro.

petro

This means that Petro, technically, will become as stablecoin for the bolivar, just as Tether (USDT) tends to become for the US dollar. The President confirmed that the assessment of each currency will be handled by the Central Bank, and also hinted at a new wage system created to pay salaries in Petro.

Since Venezuela has the largest oil reserves in the world, as of January 2014, the country had 297 billion barrels, it is assumed that Petro was conceived as a way for the country to bypass tough international economic sanctions.

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