The president of Venezuela Nicolas Maduro has declared something interesting about the national digital currency Petro. It is going to be used for paying a Christmas bonus to the retired workers and pensioners in the country. This report was from the Twitter page of local media agency Venepress.
Maduro anunció “aguinaldo” de medio Petro para empleados públicos https://t.co/zATS8l4DqT
— Venepress (@venepress) November 18, 2019
This however, is not the first case that the Venezuelan government was going to use cryptocurrencies to issue payments to pensioners. In the last quarter of 2018, Venezuela did an automatic conversion of the bonuses of pensioners into cryptocurrencies.
Petro, Likely Future of the Economy of Venezuela
This particular digital currency was floated for a pre-sale in the first quarter of 2018. That time, it caused some controversies and foreign analysts went berserk right from the beginning. In the middle of 2018, the digital currency was blasted as a useless stunt dependent on a weak and debt-riddled economy.
But that hasn't stopped the government from promoting the country’s cryptocurrency and other digital currencies into use. Francisco Torrealba is the Deputy of the National Constituent Assembly of Venezuela and he is of the opinion that something drastic should be done. He is calling for the replacement of all currencies with digital currencies and cryptos only.
While discussing Venezuela, he stated that the country was confronted with a massive transformation. He also praised President Maduro and hailed him for doing a great good by establishing the Petro. He rounded off his interview by stating that everything should be tied to the Petro.
Maduro’s Pet Project
Maduro on his own has ordered that the Petro should be put to massive use. He has ordered that the funding of a current social housing project must be done using the cryptocurrency. In the same announcement, Maduro wants the oil-backed digital currency to be utilized in the construction of the new homes. The project is called the Great Housing Mission Venezuela. It was actually a project that was started by his predecessor, the late Hugo Chavez in the year 2011.
The announcement was not made by Maduro himself. It was made on his behalf by the country’s minister of habitat and housing, Ildemaro Villarroel. He said that making use of the petro was going to give the room to private businesses to invest and provide funding for the construction of the social housing project. This is expected to be via the stock market.
Under the plan, four thousand houses are projected to fall under the cryptocurrency payment program. Almost 4,800 homes are already being constructed said the minister. This report was also published by the state news agency of Cuba.
The head of the cryptocurrency initiative is Joselit Ramirez. He has stated that the concept is a very good one and an amazing idea that the president is using to combat the biting effects of crippling economic sanctions. Some analysts think that it is another move by the embattled Maduro to push the digital currency into the struggling economy. He once ordered the country’s apex bank to release funds to elderly workers using cryptocurrencies. He has also tried to get other countries to accept the Petro in oil transactions.