• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news today, price & technical analysis
Price & Market
Cap Data from
Nomics Logo
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Buy SilverTry
No Result
View All Result
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Buy SilverTry
No Result
View All Result
NewsBTC
No Result
View All Result
Price & Market
Cap Data from
Nomics Logo

Maduro Mandates Venezuela’s Petro to Become Second National Currency

newsbtc by newsbtc
3 years ago
in
Reading Time: 3min read
Maduro
Advertisement

Facing hyperinflation as well as international sanctions that have brought Venezuela to its knees, controversial President Nicolás Maduro has mandated that his recently-developed Petro cryptocurrency become the nation’s second official currency.

Maduro Adopts the Petro as Venezuela’s Second National Currency

The news was announced by Maduro in a televised address today, and will officially be in place by August 20, when the “sovereign Bolivar” will be joined by the Petro. In attempts to combat rampant inflation, the move is set to apparently take five zeros away from the national currency.

In July, the International Monetary Fund (IMF) warned of an economic “collapse” in Venezuela, for which it projects an inflation rate of 1,000,000% by the end of 2018 and a fall in GDP of 18%. This current situation, the IMF says, is comparable to that of Germany during the Weimar Republic or the Zimbabwe crisis at the end of the last decade.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

These numbers put the price of a cup of coffee, once worth just 450 Bolivar, at more than one million today. Looked at another way, one million Bolivar is the equivalent of roughly 30 American cents.

“As of next Monday, Venezuela will have a second accounting unit based on […] the value of the Petro.” Maduro said. “It will be a second accounting unit of the Republic and will begin operations as a mandatory accounting unit of our PDVSA oil industry.”

Maduro confirmed that the valuations of each currency will come from the Central Bank (CBV). He also hinted at a new salary system built for paying wages using the Petro, as well as new pricing guidelines for goods and services, but no real details were provided in the address. The Petro will be used by the state oil industry, and will also be pegged to the “sovereign Bolivar,” meaning the Petro will be a sort of stablecoin for Venezuela.

“Venezuela is going to have a real official marker […] so that the speculation with the Venezuelan currency is over,” Maduro boasted.

International Perspectives on the Petro

The Petro has been something of a pet project for Maduro, and it’s thought that his plan has been to skirt the harsh international sanctions imposed on his government by conducting international trade with Petro rather than the Bolivar.

There is also evidence to suggest, as NewsBTC reported in March, that the Petro was ushered into existence in part by Russian officials, bankers, and businessmen. The theory is that Russia and Venezuela want to use the digital currency as an experiment in dodging U.S. sanctions placed against both countries.

In April, President Donald Trump, believing the Petro to be simply an extension of credit to the Venezuelan government, issued an order prohibiting U.S. citizens from engaging in transactions using the token. The Treasury Department called it:

“Another attempt to prop up the Maduro regime, while further looting the resources of the Venezuelan people.”

Featured image from Shutterstock.
Tags: cryptocurrencyHyperinflationinflationInternational Monetary FundNicolas Madurooilrussiasovereign BolivarThe PetroTrumpVenezuela
TweetShare
Nexo Logo
BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner? Win up to $1,000,000 in One Spin at CryptoSlots
newsbtc

newsbtc

Related Posts

bitcoin thin ice

Time To Be Careful: Why Traders Are Cautious On Bitcoin Right Now

2 hours ago
Bridge Oracle

Bridge Oracle Soon to Launch Mainnet

6 hours ago
Bitcoin, cryptocurrency, BTCUSD, BTCUSDT

Bitcoin Price Outlook: Executive Sees BTC/USD At $60,000

9 hours ago
Ethereum, ETHUSD, ETHBTC, ETHUSDT, cryptocurrency

Ethereum Flips Strong Resistance Levels as Price Eyes $2,000-Retest

11 hours ago
Bitcoin surpasses $51k: traders discuss what is coming next in short-term

Bitcoin surpasses $51k: traders discuss what is coming next in short-term

12 hours ago
Polkadot (DOT)

Charted: Polkadot (DOT) Steadies Above $35, Why Bulls Aim $40 or Higher

15 hours ago

Premium Partners

Top Brokers

eToro

eToro

Review · Visit
Evolve Markets

Evolve Markets

Review · Visit
ArbiSmart

ArbiSmart

Review · Visit
PrimeXBT

PrimeXBT

Review · Visit
Moneta Markets

Moneta Markets

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bonusfinder DE

Bonusfinder DE

Review · Visit
Bspin

Bspin

Review · Visit
Wolf Bet

Wolf Bet

Review · Visit

Top Sportsbooks

1xBit

1xBit

Review · Visit

Press Releases

First-Ever Public Tron-based Smart Contract

March 3, 2021

ECOMI to List OMI Tokens with BitMax

March 3, 2021

eToro and DS TECHEETAH Change Face of Sponsorship With Unique Profit Only Deal

March 2, 2021

Newsletter Signup


ABOUT US

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Auto Trading Software ▸

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2020 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Trade
  • Buy Silver

© 2020 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.