What’s the update regarding Venezuela’s cryptocurrency?
We all know that Venezuela has suffered from an economic crisis in the past months, causing the country to be in chaos. People were panicking, and starvation has become a common sight in the country. Add to that the downfall of the country’s currency.
Due to this massive chaos in Venezuela’s economy, the leaders in the country decided to try the power of digital currencies, with the hope that this might be the solution to their country’s problem.
What’s the update regarding Venezuela’s cryptocurrency? Check this out!
At the end of 2017, Venezuelan president Nicolás Maduro announced plans to establish a national cryptocurrency called the Petro, backed by the country’s oil reserves.
Venezuela’s economy has been in a perpetual state of crisis for many years – the International Monetary Fund has tipped Venezuela’s inflation to reach 2,300% this year. The development of a state-issued cryptocurrency, in theory, would alleviate some of this pressure brought on by US sanctions. It would provide a quicker means of payments for suppliers, vendors, and investors, the president claimed.
It was a strange decision for the leader to make. Venezuela has been anything but accommodating to bitcoin and cryptocurrency. Authorities have shuttered exchanges and mining operations, arrested bitcoin users, and the government has established a register of cryptocurrency miners and their equipment to keep track of who is mining coins.