Venezuela, the country plagued by hyperinflationary pressures over the last few years, has announced that it will issue a state-sponsored oil-crunched “Petro” cryptocurrency with the aim of consolidating its struggling economy. The announcement comes as a result of the massive adoption of Bitcoin in the nation.
The announcement made by President Maduro was greeted with applause from the crowd, who said the 21st century has arrived for Venezuela, but opposition leaders have suggested that cryptocurrency would require approval from the government. Congress and would never see the light of day. day.
The rapid decline of the country’s currency, the Bolivar, is at least partly the result of financial sanctions imposed by the United States. Maduro hopes that a cryptocurrency would allow money to enter the country through channels that are not currently accessible by other governments. Maduro said the new cryptocurrency would allow the country to:
“Advance monetary sovereignty issues, make financial transactions and overcome the financial blockade.”
Even though such cryptocurrency could potentially offer a way of circumvention for the country’s government, linking it to oil, gas and diamond reserves can be extremely complex. Some opposition leaders suggest that Maduro could seek to pay outstanding international debts with the currency issued by the state.