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Venezuelan Authorities Mandate Local Banks to Integrate Oil-backed Petro Cryptocurrency

Venezuelan Authorities Mandate Local Banks to Integrate Oil-backed Petro Cryptocurrency

Reading Time: 2 minutes by on August 30, 2018 Adoption, Altcoins, Finance, News, Regulation
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Venezuela’s President Nicolas Maduro and his cabinet are determined to liberate the nation from the age-long economic crisis that has plagued the region, with its native digital currency the Petro. Per a France 24 report on August 28, 2018, authorities have ordered local banks present in the region to adopt the Petro crypto.

Banks to Use the Petro Altcoin

According to sources close to the matter, Maduro has made it mandatory for all the banks in the region to integrate the Petro into their operations and use it as a unit of account. Going forward, both state-owned and private banks will now use the newly issued sovereign bolivars and the DLT-based Petro virtual currency for all financial information in the nation.

For several years the Latin American nation has been plagued with a severe socio-economic crisis that has joined forces with international sanctions to paralyze the country’s economy.
According to the International Monetary Fund (IMF), the inflation rate in Venezuela may reach one million percent by the end of 2018.

Amidst that backdrop, as previously reported by BTCManager on August 16, 2018, authorities announced moves to officially make the Petro the second unit of account in the region, and also use it to pay workers salaries.

The presidency also seized the opportunity to set an August 20 date for the devaluation of the bolivar, to strip it of five zeros and transform the dead banknote into a “sovereign bolivar.”
“It will be the second unit of account of the Republic and will begin operations as a mandatory accounting unit of our PDVSA oil industry,” said Maduro at the time.

Of a truth, the creation of the Petro and subsequent devaluation of the Bolivar may not be a quick fix to the problems of Venezuela, Maduro and his team, however, remain determined to make things work correctly again.

At current, the Maduro led administration has increased workers minimum wage by a whopping 3,000 percent (equivalent to about $30 a month) and has also hiked the price of gasoline, a move it claims would help Venezuela save about $10 billion annually.

Since launching the Petro central bank-backed cryptocurrency, Maduro has been doing everything in his power to increase Petro adoption in the state. Back in May 2018, authorities announced the creation of a Petro-funded youth bank that would be granted $1.2 billion to handle “productive initiatives” for the young adult population.

While about 400,000 citizens have fled from Venezuela to neighboring nations like Ecuador, the diehard citizens and businesses that have decided to remain in the embattled country have reportedly been adopting other cryptos like Dash (DASH), to help them survive the crisis.

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