In 2017 the inflation rate in Venezuela reached 1,370%.
To put that in perspective, the hamburger that cost $5 at the beginning of the year, now costs $68.50. Ouch. And one economists thinks the inflation rate could rise beyond 2,300% in 2018.
Add in sanctions from the US, and Venezuela is in a financial pickle.
The answer to Venezuela’s problems, according to President Nicolas Maduro, is the petro, an oil-backed cryptocurrency.
Specifically, the petro will be backed by Venezuela’s 5.3 billion barrels of oil worth $267 billion. And per Maduro it would also be backed by their gas, gold, and diamond reserves.
With the petro Maduro is hoping to have a way to raise capital and sidestep US sanctions.
It also might help Venezuela pay back the reported $120 billion it owes to foreign creditors.
While many are skeptical, Venezuela announced today it had 860,811 people sign up to create petro mining farms. And they’re looking for more miners with a signup that’s open to January 21.
I’m skeptical about the petro. There’s no information on how exactly it will work. And the Venezuelan government doesn’t have a good rep to begin with.
I think they should just mine bitcoin, like their citizens.
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