Venezuela to Replace Bolívar Currency with Oil-Backed Petro Crypto Token
Venezuela Decides to Tie In New National Currency with Local Cryptocurrency Tokens
In recent reports, Venezuela has decided to take on a new national currency. The former currency, known as the bolivar, will be replaced with a type currency that will be tied into the cryptocurrency token called Petro.
This new currency is planned to be launched next month, according to President Nicolas Maduro. He also said that the new sovereign bolivar will be “anchored” to Petro, even though it has only been around since February. Additionally, the country plans to eradicate five zeros from the new currency, rather than only three like before. The goal is to surpass the inflation that the country has experience lately, which is expected to get to a million percent by the year’s end.
The President told teleSUR, a local news source, “The economic reconversion will start on August 20 definitively with the circulation and issuance of the new Sovereign Bolivar, the new monetary cone [sic] that is going to have a new method of anchoring the Petro.” President Maduro continued, noting that the changes that this new currency will implement will be “radical.” He said that his residents “have the correct vision of what the economic future in Venezuela should be, above all, we will achieve it.”
In reference to the use of the Petro, President Modero also stated that it “will end up being consolidated technologically and financially,” and that it eventually will “permeate all the national and international economic activity.”
Some residents may be confused by the inclusion of Petro, considering that the congress deemed it “illegal” before it was launched in the country. However, the token has still managed to move into the middle of many financial situations in the country.
Even the President has campaigned for its integration throughout the country. Back in February, he actually asked the banks directly to mine for petro to use, and commanded multiple companies to contribute to the token’s platform. This is just one of the many initiatives that have been setup by the President to urge investors to get involved with cryptocurrency.
Originally, President Maduro intended to assign about 100 million tokens to heal from the sanctions that the United States had imposed upon them, which is estimated to be worth $6 billion. When President Donald Trump responded in March, he ended up signing a new order that would issue new sanctions that were not in favor of Petro.