According to an announcement from the Maduro regime in Venezuela, from 20th August today, the country’s national cryptocurrency, Petro, will officially become the second unit of currency. Petro will also be used for paying the country’s workers.
Only a week ago, Nicolas Maduro announced a new move that will see the country’s national crypto, oil-backed Petro, become the official currency of this country and the coins will be issued by Venezuela’s Central Bank and will be extensively used by PDVSA, the oil company owned by the state. Finally, the plan is to use Petro coins for paying workers’ salaries.
Petro officially adopted
The announcement of Petro becoming the country’s second unit of account was brought by Nicolas Maduro himself. He addressed the nation via television to proclaim that everything is going according to plan and that Venezuela is finally ready to officially adopt Petro.
Some sources familiar with the inner workings of Venezuela’s regime stated that the monetary conversion is scheduled for August 20th and that it will remove up to five zeros from the country’s fiat currency, the bolivar. As a result, the country will issue a new banknote, the ‘Sovereign Bolivar’. Maduro said that Petro will start operating as PDVSA’s mandatory accounting unit.
Even though Venezuela has a large amount of oil deposits, it still experienced a heavy economic crisis in the last few years. After numerous failed attempts to make things better in the country, Maduro’s regime turned to cryptos in an attempt to resolve the situation. According to Maduro, Petro has the potential to cure hyperinflation in Venezuela, which is why recent efforts have been made to render Venezuela as crypto friendly as possible.
The positive effects of Petro have yet to be seen, as hyperinflation continues to torture the country, with some predictions saying that it will reach 1,000,000% by the end of the year. However, with Petro being officially adopted, and the sovereign bolivar about to arrive, Maduro predicts that the situation will significantly improve. He hinted that the price of sovereign bolivar will be the same as the price of Petro.
New national holiday and a new structure of the salary
The changes in Venezuela do not end there as Maduro announced that August 20th will become the new national holiday in Venezuela to commemorate the possibility of ending the country’s economic difficulties and herald a new beginning.
An even bigger change involves the salaries of this country’s workers, which will now be calculated via Petro instead of the bolivar. The same goes for the prices of services and goods. According to Maduro, this will lead to a significant increase in Venezuela workers’ income.