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.
The economically struggling South American country and a strong supporter of crypto as a means of payment will see over 20,000 merchants recognize bitcoin and other cryptocurrencies as legal tender for shopping come June.
US authorities indicted blockchain and digital currency friendly president of Venezuela Nicolas Maduro and 14 other senior government administrators with narco-terrorism and participating in conducting illegal dealings specifically drug trafficking using cryptocurrencies payments to camouflage their tracks and circumvent sanctions.
Blockchain can be used to overcome social inequalities like the French protests that have been occurring month-in-month-out since late 2018, the political protests that normally happen in Venezuela, and many others.
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.