Venezuela President Tells Citizens To Invest In Petro Cryptocurrency and Gold With Bonuses

Venezuela’s President Tells Citizens To Invest In Gold And The Petro Crypto

Nicolas Maduro, the president of Venezuela, has been reported by the local media outlet Noticiero Digital to go to television and ask workers to invest in gold and in the Petro, the new state-backed cryptocurrency which will allegedly be backed by Venezuelan oil.

On the television broadcast, the president has reminded the workers of the country that salaries will start to be paid with bonuses based on the Petro, as it was affirmed by him some months ago when the Petro was announced, and that they should use this money to invest in assets whose price would be stable.

Paying salaries based on the Petro instead of using the old fiat currency of the country, the Sovereign Bolívar, as a unit for the measure is an idea that appeared as the need for a solution to the hyperinflation in the country was important since the prices have not stopped to go up ever since.

This official announcement comes in the same week that Maduro has authorized six crypto exchanges in the country to begin offering Petro as an asset. However, one of the exchanges cited by the president, Cryptia, appears to have zero trade volume for assets like Bitcoin (BTC), Ethereum (ETH) and Dash or Ripple (XRP).

The Controversies Surrounding The Petro

The Petro was announced back in 2017 when cryptocurrencies were at the top of their hype. However, the asset which once looked like it could represent the future of Venezuela has been shrouded in controversy and suspicion so far.

At the moment, there are allegations that the Petro is not really backed by a state oil company and that the company has largest debts right now than the market cap of the token. This means that the currency has not even started to be properly traded yet and it is already looking to face many problems in the future.

The government of the United States has even recently decided to interfere in the Petro as we have reported. A bill created by the Senators Bob Menendez, Marco Rubio, Bill Nelson, John Cornyn, Dick Durbin, David Perdue, Ben Cardin, Ted Cruz, Tim Kaine, Michael Bennet and Patrick Leahy and signed by President Donald Trump is intended to impose sanctions on the cryptocurrency.

Also, the bill will be used to bar any company from the United States to list the Petro or to offer any kind of assistance to any person or company who deals with it.

The Crisis In Venezuela

Venezuela currently faces a violent crisis that sums the lack of freedom that the country has been facing during the Maduro government and many problems in the economy, hyperinflation being the main one. The annual inflation rate of 1,000,000%, unprecedented in Venezuela and reached by a few countries in recent history, has been making most people poor.

Some people are facing famine and the salaries have lost most of their values even as the country holds the greatest oil reserves in the world now. With the political and economic crisis, many refugees left the country and the situation has been only getting worse since then.

Venezuela has currently almost run out of foreign reserves and it has lost access to most foreign markets, which, in a country that is heavily dependent on oil and does not have a diversified industry, can be quite a problem, thus the hyperinflation happened and it has no end in sight.

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