Venezuela’s Oil-Backed Cryptocurrency Petro will Officially be Second Alternative Currency

Petro Is Now The 2nd Alternate Currency In Venezuela

It’s now official; Petro is the second accounting unit in Venezuela. According to a statement from the country’s president, Nicolas Maduro, the oil backed cryptocurrency will be officially used by the country’s state owned company PDVSA.

Commencing Monday, the Petro will officially be an accounting unit. In a televised address, Maduro declared that Petro will be the second accounting unit for the country’s PDVSA oil industry. He further added that its operations for the company will be mandatory.

What Happens To The Country’s National Currency Now?

The country’s national currency as of now is the bolivar which has been marred by inflation. As the Petro is launched in the coming week, five zeros will be dropped from the ‘sovereign’ coin in order to accommodate the monetary conversion.

Venezuela’s Central Bank will then peg the bolivar’s rate to that of Petro. It’s worth noting that the Petro will be used for conversion of other countries’ currencies in Venezuela. Such a move continues to raise eyebrows around the world as countries watch and wait to see how the move is implemented.

President Maduro has continued to expand the usage of Petro in Venezuela. However, international players have refused to embrace and use the cryptocurrency in carrying out oil transactions in the country. From the murky volumes of the use of Petro, there’s still a lot to be done by Maduro and his team.

Petro’s History

The US administration hasn’t been quite happy with the use of Petro in Venezuela. The US had placed tough sanctions on the country due to violation of human rights. Petro came into the picture when Venezuela’s bolivar was going through a phase of hyperinflation. As a result, Venezuelans were left with limited options and turned to Bitcoin for refuge.

As of April 2018, the Bolivar/ Bitcoin trading reached a daily high of 1 million dollars. As much as the government tried to restrict the use of Bitcoin, the citizens sort to preserve their wealth through the adoption of Bitcoin.

The coming days will be monumental for crypto enthusiasts around the world. As it stands, Maduro isn’t slowing down in adopting Petro into Venezuela’s economy.

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