Venezuela is the country where more than 1000% inflation has recently occurred. Prices are shooting through the roof and their own people can hardly get any more daily products. To counter this, Venezuelan President Nicolas Maduro has launched a national cryptocurrency called Petro.
According to the Venezuelan administrators, the Petro is linked to the national oil, gold, gas and diamond reserves and we look at the possibilities of investors from the Middle East, North America and Europe. The national "crypto" is valued at $ 59.00.
Hyperinflation
The national currency of Venezuela, the Bolivar, has to do with hyperinflation and brings the country to the economic abyss. The collapse of the national currency has ensured that there is a shortage of food and other products. It is likely that unemployment will rise to 32% in 2022 due to hyperinflation.
Today the pre-sale of the ICO has started. This is not accessible to the citizen or small investor. In the pre-sale, companies or large investors can participate, after which the ICO is opened to everyone.
Opponents Petro
There are enough skeptics about this initiative. These doubt whether the Petro really will contribute to the situation and what the benefits are for the people of Venezuela.
The South American country still has to deal with international sanctions. The US Treasury Department has also said that participating in the ICO is a violation of these rules and advises investors not to invest in this.
Venezuelan legislator Jorge Millan also warns potential buyers for Petro. He insists that this is not a cryptocurrency but a product that is linked to the national oil and that is made for corruption.
"This is not a cryptocurrency, this is a forward sale or Venezuelan oil," adding, "It's tailor-made for corruption." Jorge Millan
The action of Maduro shows that the country urgently needs to innovate the current domestic monetary system. But whether this is the right way, we have to wait. Will Russia follow with its own "crypto ruble"?