Venezuela is amidst one of the toughest economic recessions in the country’s history. To reinforce their standing, its citizens turn to Bitcoin. The flagship cryptocurrency tends to be more stable than the Bolivar, or the Petro, an oil-backed crypto issued by the Venezuelan government.
Venezuela faces lots of issues due to the sanctions imposed by the United States of America against the authoritarian regime of President Nicolas Maduro. Therefore, its citizens face the need for tools and ways that would allow them to circumvent the economic crisis in the country.
President Nicolás Maduro, states that, from 2020, oil will be sold for Petros, the cryptocurrency developed by the Venezuelan government. He assured that this year the country's oil production will be sold in their own oil-backed stablecoin.
On Wednesday, President of Venezuela Nicolas Maduro revealed that 30 million barrels worth of oil placed in storage tanks is going to work as the backing for the OPEC nation’s government-owned digital asset known as Petro, that has been going through tougher times including being sanctioned by the U.S government under the leadership of President Donald Trump.
On Sunday November 17 of this year, the current president of Venezuela, Nicholas Maduro made a statement that the government’s financial authorities will pay a Christmas bonus to a large number of retirees and pensioners using their own national digital asset called the Petro.
President Nicolas Maduro of Venezuela, issued an order to Banco de Venezuela (BDV), a global financial institution based in Caracas, to begin accepting the Petro (PTR), the country’s popular oil-backed digital currency. Through the Minister of Finance, the President told the country’s third market leader with a market share for deposits of more than 11.2%, to begin allowing Petro cryptocurrency in all of its functioning branches.
The Bolivarian Republic of Venezuela, one of the most oil-rich countries in South America and the world at large, is still experiencing political instabilities and this has led its economy to stagnate. The traditional (fiat) currency bolivar has lost value due to the hyperinflation that hit the country, this has forced its citizens to massively store their wealth in crypto currencies such as petro, Bitcoin, Ethereum, Ripple and others.