PETRO: Review On Venezuela’s National Cryptocurrency (Part 1)

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Venezuela, a country located in South America, has the largest oil reserves in the world (Opec). Paradoxically, despite these natural reserves, their internal political conflict and USA led International embargo has created a situation where external foreign companies have it hard, if not impossible to conduct any business there.

The Venezuelan economy has been suffering for decades now, affecting merchants, consumers and producers alike. All the public accounts of the state in other countries are blocked and no citizen nor companies can freely buy or sell, pay, have suppliers, buy medicines, food, etc.  

To ease their domestic financial situation, Venezuelan government started first to experiment with some existing cryptocurrency platforms, such as Ethereum, but it has been rumored that the US Government attacked their crypto experiments as soon as the Trump Administration entered the power. True or false, Venezuela opted for their own national Cryptocurrency called Petro, which no economic group could dominate.

Later on, Venezuela has created conditions to start legally using various recognized cryptocurrencies such as Bitcoin, Ethereum, Litecoin, Dash and Altcoin. For some that might sound self-evident, but in Latin America where most countries have forbidden all cryptocurrency related activity, it is paradoxically liberal especially from the Government of Venezuela that considers itself “Chavista”. Furthermore, Venezuela is investigating enlarging the usage of cryptocurrency coins into areas of specific cases, coffee, and cocoa, among others. The president aims Petro to become a widely used way to do payments by the citizens. Unfortunately, many Venezuelans still do not know how to use it. For information on how to buy crypto currency please go through this Fyggex article.

Venezuela’s President Nicolás Maduro implemented the use of the Venezuelan cryptocurrency Petro to counteract the inflation.  Some of the statements linked to Maduro have propaganda sounding elements, such as the comment that “It is no secret to anyone that the dollar has become a weapon of the United States government to harm the economies of emerging countries”.  Nevertheless, it is true that the US dollar is the base for the vast majority of global financial transactions regardless of asset class and Venezuela’s thrive for independence with their Cryptocurrency Petro is a fresh anomaly.

*Disclaimer: Fyggex, does not give any guidance, advice or recommendations to neither invest or not in any available cryptocurrency directly or indirectly via any trading platform, exchange or provider. Our sole purpose is to make you aware of the related real or potential risks and opportunities so that you can make your own research prior to any financial decisions you may want to take. Past performance and position are not a guarantee of risk-free future returns.