However, Nicolas Maduro is a tougher (or much more desperate) competitor than previously thought. The President of Venezuela is still fighting for Petro, the national digital currency that was supposed to revive the Venezuelan economy and protect it from hyperinflation.
On Petro’s problems
Recall that the world heard about Petro in 2018. Maduro promised to create a digital currency that would be based on his country’s oil. So he was thinking of something like stablecoin. The project was probably also supposed to help Venezuela circumvent the sanctions that are imposed on the country by the US.
Problems came up very quickly. The parliamentary opposition said that Petro has no real backing in oil and everything Maduro says is a lie.
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But the President did not give up. Seeing BTC’s growing popularity in the country – and not understanding unless the citizens are attracted to the independence of the cryptographer – he decided to “push” the digital coin into the country almost by force. Today, passport fees must be paid in Petro. Some time ago, pensioners also received a financial bonus in the form of digital currency. There was even an idea to make Petro the currency of OPEC. But nothing has helped.
Oil only for digital currency
Venezuela has a problem with its own currency.
Now Maduro has signed a decree to sell 4.5 million barrels of oil from a certified reserve of as much as 30 million barrels held by Petroleum of Venezuela (PDVSA). However, we are interested in the details of the transaction. The oil is to be sold for Petro.
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“We are preparing for a second phase, which will allow a more efficient use of the cryptocurrency.”
– told Maduro before the Constituent National Assembly, which acts as the parliament in the country. He added that he wanted to “open the way to a new economy” and build a world of “peace and integration of nations, their happiness and improvement [of fate]”.
His opponents claim that this is nothing more than a “robbery hidden under 4.5 million barrels”.
An experiment that has failed
Unfortunately, Maduro’s new steps show how desperate he is. Petro is supposedly not in actual use in his country. Instead, the local currency is destroyed by hyperinflation caused by the misguided economic and foreign policy of the political elite. Strangely enough, Petro is still being resuscitated, despite the fact that he died right after his birth…