🗞 Inflation: Venezuela wants to launch cryptocurrency in mid-February

in news •  7 years ago 

With the introduction of a cryptocurrency Venezuela wants to contain its severe economic and supply crisis. Now President Maduro has issued a launch date for the "Petro".

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Venezuelan President Nicolás Maduro has announced an appointment for the introduction of the cryptocurrency Petro. On Tuesday Maduro presented a white paper about the functioning of the new cryptocurrency, whose presale will begin on 20 February. In view of the economic sanctions of the United States and the lack of forex, the Venezuelan government wants to regain access to the international financial markets with the Petro.

The currency is to be hedged with the huge oil reserves of the South American country. At the beginning, five billion barrels of oil (159 liters each) are reported as safety for the Petro. Overall, the oil-richest country in the world claims reserves of 267 billion barrels.

Due to the relatively low price of oil, mismanagement and corruption, Venezuela has suffered for years from a severe economic and supply crisis. Inflation is by far the highest in the world. In addition, the country has hardly any foreign exchange to import food, medicines and everyday necessities.

Source: dpa


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Such an interesting and clever way for Venezuela to get around the restrictions placed on them. This is the free market in action... too bad the government there won't let the people exercise the free market for themselves.

I think that this will be successful because the do it adequately to the monetary laws. Therefore that might be the start for more state owned crypto currencies in 2018.

1.39% @pushup from @sarasate