Venezuelan president Nicolás Maduro has directed the Petro digital coin to be accepted as a method of an account by banks in the country. This has been seen as a way for the leader to reduce the effects of his tenure’s economic policies. In the latest changes made to economic reforms, President Maduro has also effected the increase in the public minimum wage, petrol prices as well as the VAT.
Financial Institutions To Forcefully Accept The Petro
The orders have directed all financial banks to have their financial information in denominations of the nation’s fiat currency, the Bolivar, and the Petro Cryptocurrency. The statement which was made on Monday seeks to reduce the effects of the economic crisis the country is currently under and has been experiencing in the past few years now.
The economic situation in Venezuela is seen to be steadily declining, with international bodies like the IMF (International Monetary Fund) going as far as estimating that the nation’s inflation rate may be shooting towards the million percent mark by the end of this year. Many of the nation’s citizens have fled in a bid to break free from the crisis while the ones that remain are opting to take advantage of the safe haven created by the Cryptocurrencies, like Bitcoin, in an effort to secure the limited resources they still have.
Newly Revised Economic Reforms
In his latest reforms, the president has increased the minimum wage by 3,400%, the country’s VAT has also been increased by 2%, to 16% from the previous 12%, and the price of petrol has also gone up.
Additionally, alongside these reforms, the president has stated that he will be availing offers for bonds that will be receiving backing from gold in the hopes of promoting a responsible saving culture for the citizens of the nation. The statement announced that the bonds, termed as lingoticos will be up for purchase from the middle of September with the president adding that gold does not lose value.
The Launch Of The Petro
The oil-backed digital coin, the Petro, was launched earlier this year by the president. The Cryptocurrency, which has been said to be backed by the oil reserves of the country, has received much controversy since its launch. There have even been allegations that the initiative was led by the Russians in a test of how to evade economic sanctions by the US.
President Maduro has recently proposed that the Cryptocurrency should be country’s second currency. However, it would seem that many of the nation’s citizens are looking into other options. The Dash Cryptocurrency is a preference for many a merchant and citizen as compared to the Petro. The crypto foundation, Dash Foundation, has even invested in educating the public on the secure way of using the digital currency.
President Maduro was re-elected into office in May for another six-year term. The president is hopeful that by adding the Petro as the nation’s second fiat currency, the country will attain some semblance of financial stability.