In a renewed effort to rescue the failing economy in Venezuela, President Nicolas Maduro has ordered the largest bank in Venezuela, Banco De Venezuela, to allow users to buy and trade his popular oil-backed cryptocurrency, the Petro (PTR).
In his own words, “I hereby order that every branch of Banco De Venezuela opens exchange desks so that everyone can transact with El Petro and start using it.”
This order will move the bank to start accepting the cryptocurrency in each of its almost 790 agencies across the country. The president had also mandated that all payments for passports be made in Petros.
Maduro also wishes that “El Petro” is adopted in the nation’s public and private banking sectors. But we couldn’t help but notice that move has everything political move, as he stated, “this is the new world where we can lead by example. We can do this from Venezuela. The world is looking at us.” He continued, “Cryptocurrencies must be democratized against a backdrop of economic sanctions, block and financial persecution,” likely referring to the U.S sanctions.
Mandating that all payments for passports be made in Petros makes it close to impossible for the majority of the populace to try to seek refuge in other nations, since the cryptocurrency is presently not available to the general population.
El Petro has always been one of Maduro’s tools to circumvent the international sanctions imposed on Venezuela by the U.S. The Petro is reportedly backed by the nation’s rich oil reserves and many state-owned companies, likely confiscated from business owners when Venezuela had more of a free market economy.
Maduro announced in September 2018 that El Petro would be used in international transactions from October 1, but things didn’t go according to plan and people are slow to adopt the cryptocurrency. This hasn’t stopped Maduro from continuing to push for the cryptocurrency’s success. The president sees it as a solution to the country’s failing socialist economy.
El Petro is expected to be used alongside the nation’s official currency, the Bolivar. And while we know that the recent moves is not free from touches of politics, we believe the adoption of cryptocurrency as an official and acceptable means of exchange in countries is a move that’s overdue.
Cuba is another country that is considering the use of cryptocurrency as a means to boost its economy.
Seymour Nunez is a contributing writer for Cash Tech News who enjoys writing about the intersection of blockchain technology and everyday life.
The views and opinions expressed here are for informational purposes only, and should not be confused with professional financial advice. These opinions are solely those of the author and do not necessarily reflect the views of CashTechNews.com. Every investment and trade involves risk. You should conduct your own research, and contact your professional financial advisor before making any investment.
Corrections, feedback, and ideas should be submitted through the website contact form.