Reports have emerged from Caracas that Venezuelan President Nicolas Maduro has ordered banks to adopt the petro cryptocurrency as a unit of account.
With Venezuela struggling to battle back from a severe economic and political crisis the petro cryptocurrency, which is now tied to the new ‘sovereign Bolivar‘ has become mandatory by order of the President.
Banks obligated to use petro cryptocurrency
According to a resolution of the Sudeban banking regulator both public and private banks are now obliged to provide all financial information in bolivars and petros.
This move is seen as the centerpiece of President Maduro’s somewhat desperate attempt to lift the country out of what has been five long years of inflation and recession.
Predictions from the International Monetary Fund (IMF) are that inflation in Venezuela will reach around one million percent before the end of this year.
Last month the prices for goods and service had risen by 82,766 percent, which is the country’s highest ever inflation rate.
To many outsiders, it appears that Maduro is hellbent on having his petro cryptocurrency be seen as a success, and with the oil industry previously being ordered to use it for business transactions the President has now turned his attention to the financial sector.
A tactic to avoid international sanctions?
The petro has been touted as a ‘stablecoin’ for the new Venezuelan sovereign Bolivar, with each being of equal value.
As things stand at the time of writing, one petro is valued at around USD 60.
Outsiders have speculated that the petro is just a tactic employed by the Socialist President to avoid international sanctions, allowing him to take advantage of the unregulated crypto market to continue selling oil.
France 24 has also reported that Maduro has launched new government bonds that are backed by gold, with the President claiming that it would promote savings for Venezuelans who have become unhappy by the continued devaluing of their national currencies.
“No one can say that gold loses its value,” Maduro commented on Venezuelan state TV while displaying two cards with the central bank emblem’s and some golden rectangles that he called “lingoticos.”
As things stand, more than 2 million people have fled Venezuela in the wake of the ongoing crisis.
Lover of all things crypto, blockchain and AI, professional tech scribe & part of the editorial team at Crypto Disrupt.