Nicolás Maduro recently announced the launch of a new national currency based on cryptocurrencies that should circulate in the country on 20 August.
Maduro and Trump clash
The Venezuelan economy has become dependent on oil exports over the years. Currently it is experiencing a persistent inflationary crisis following the fall in oil prices in 2014.
In addition, the Venezuelan President turned to digital currencies to circumvent the financial blockade of the nation. The government created its own cryptocurrency backed by the oil reserves of the country dubbed "Petro" last February.
Although Maduro himself supports the state's virtual currency project, the Petro has been the subject of tremendous friction by the people and the opposition party . "The Petro would be unconstitutional" . "This is a fraud and a potential threat to investors," added Congressmen. Donald Trump , the US President, sided with the opposition by banning the purchase and sale of Petro, and all other virtual currencies from Venezuela to US citizens .
Bolivar Soberano
Bolivar Soberano (sovereign Bolivar) should heal the crippled economy of Venezuela after Maduro. This new currency aims to align the country's financial and monetary system "radically".
In order to develop a "productive, diversified and sustainable economic model", existing fiduciary money should be converted back into "anchoring to Petro" .
The launch of a new national currency is expected to reduce inflation and liquidity shortages as well as alleviate the long queues at ATMs.
Maduro remains confident about the Petro despite persistent opposition. State cryptocurrency "will eventually be consolidated technologically and financially". It will embrace "all national and international economic activity , " concluded the Venezuelan President.
The government has launched many social projects in relation to the Petro even if it is considered illegal.The Ministry of Housing and Housing has announced the possible launch of a program to build homes for the homeless , funded by the Petro in July.
The initiatives and prospects of young students are enhanced by a banking project financed by Petro . Maduro announced the opening of a cryptocurrency financial institution in May.
In addition, 100 million Petros , or $ 6 billion will be launched to overcome the financial sanctions imposed by the United States according to a presidential statement .
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Posted from my blog with SteemPress : https://infos.link/venezuela-the-national-cryptocurrency-petro-will-be-released-in-august/