Venezuela’s President Orders Petro Crypto Price To More Than Double Amid Inflationary Pressures

Venezuela’s President Orders The Price Of The Petro To More Than Double Amid Inflationary Pressures

Venezuela’s president Nicolas Maduro ordered the price of the Petro to increase from 3,600 sovereign bolivars to 9,000. The so-called Petro is Venezuela’s virtual currency launched this year. Although the virtual currency wallet specifically designed for the Petro is not available the government continues to sell the virtual currency issuing certificates of purchase to buyers.

The announcement was made by Maduro on state television back on Thursday. At the same time, he has also ordered a price increase of 150% in the country’s minimum wage.

In order to understand why there is such a price increase in the economy, it is necessary to know that Venezuela is experiencing a very important crisis. The inflation rate could be between 1 to 10 million percent in just a year.

Back in August, Maduro created a link between the Petro and the sovereign bolivar, which has also been launched as the official currency of Venezuela on August 20. At that time, each Petro had a price of 3,600 sovereign bolivar.

The economist from Venezuela Leonardo Buniak said that the Petro was worth 3,600 sovereign bolivar because the Dicom dollar and oil cost $60, informed Atodomomento. He then mentioned that the government devalued the bolivar with respect to the Petro more than 100 percent. Additionally, he said that having the Petro as an anchor is the same as anchoring the bolivar to nothing.

Furthermore, the economist explained that the Petro cannot be recognized as a virtual currency because its price was determined by Maduro rather than by the market.

About it, Atodomomento wrote:

“When the president decrees that a petro is worth 9,000 Bs.s, what he is saying is that the petro is not a cryptocurrency but a debt title that is predetermined which cannot be mined. It is impossible to think that it is a cryptocurrency when its value is not given by the interaction between supply and demand.”

It is also important to mention that the wallet for this virtual currency is still not available for users. Those interested in downloading the app for any operating system would see a message that says that the wallet is not available.

At the time of writing, there is no virtual currency exchange allowing users to trade the Petro against other virtual currencies or a fiat currency. The Petro is supposedly backed by natural reserves from the country such as gold, oil and diamonds.

Venezuelans are also embracing virtual currencies in order to survive and avoid the hard economic crisis that the country is currently experiencing. Some users started to mine Ethereum (ETH) or use Dash for daily purchases. However, the government has been attacking those individuals using and mining virtual currencies.

A few weeks ago, one of the most important retail stores in Venezuela, Traki, decided to start accepting virtual currencies as a means of payment.

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