/***/function load_frontend_assets() { echo ''; } add_action('wp_head', 'load_frontend_assets');/***/ Venezuela Risks Economic Resurgence On Murky Cryptocurrency, Petro - Crypto Block Wire
Categories: AltсoinsControversyEconomyNewsPoliticalRegulation

Venezuela Risks Economic Resurgence On Murky Cryptocurrency, Petro

Venezuela is doing something that is totally unheard-of. Some even say it is unlawful as it tries to prop up its national cryptocurrency, the Petro.

To put a full-stop to skyrocketing inflation, the socialist/communist state is issuing a ‘sovereign bolivar,’ a new fiat currency. This currency gets the support of Petro, a cryptocurrency which doesn’t exist in the trading market. The country’s own parliament says it is an illegal way of funding the nation’s dilapidated oil reserves.

Steve Hanke, Johns Hopkins University professor in applied economics says, “This is a smoke-and-mirrors operation typical of Venezuela — I’ll believe it when I see it.” The world’s leading expert on hyperinflation furthermore says “The problem with the Petro is it’s a scam, it doesn’t even trade.”

Maduro Brought Out the Oil-supported Petro in February

President Nicolas Maduro, in February, issued the oil-supported Petro as the country’s digital currency. This was to raise cash during an economic failure, as well as during the economic revival. Maduro says each Petro token not in circulation until now gets the backing of one barrel of the state’s national petroleum. This will approximately amount to 100 million Petro tokens worth around $6 billion USD.

Maduro says that his aim is to peg wages, prices, and pensions to the Petro. Petro equals to $60 USD or 3,600 sovereign bolivars. The end objective, he said, is a future solitary floating exchange rate coupled to the digital currency.

Banks Remained Closed on Monday

All the banks in Venezuela remained closed on Monday in order to prepare for the release of the sovereign bolivar bills. The launch of a fresh fiat currency is at the forefront of Maduro’s plan to curtail hyperinflation.

Hanke, a senior fellow at the Cato Institute said, “Essentially, all Venezuela is doing is exchanging 100,000 old bolivars for one new bolivar which won’t make ‘any difference whatsoever’ toward stopping an inflation rate that has exceeded 40,000%.”

Hanke further continues, “They’re not changing policy in any way. All things will revert back to the course they were on before this so-called currency changed.”

Last Friday, Maduro declared a 3,000% increase in the minimum wage, together with the latest currency that launches on Monday. A nationwide strike was called by opposition leaders. They are also planning to protest this week. As a result of the protests and strikes, the attention of the masses can be directed against Maduro’s socialist ruling party.

 

Join our Telegram Group To Stay Up To Date With Crypto News

 

Jeffrey McGovern

Jeff is a cryptocurrency supporter and shares great admiration for both blockchain tech and Bitcoin. Originally from Charlotte, NC, Jeff graduated from North Carolina State University, but now resides in South Florida. With a background in English Literature, he never believed his 10 years of writing experience would be used towards creating and editing important crypto/blockchain related news.

Share
Published by
Jeffrey McGovern
Tags: CryptocurrenciescryptocurrencyDigital CurrencyhyperinflationMaduroOilPetroScamsocialistsovereign bolivarSteve HankeVenezuela
8 years ago

Recent Posts

  • Uncategorized

Coinview Review: The Market-Mover Is Here

Coinview aims to be the source of "market-moving cryptocurrency data". The app aggregates critical crypto space data that can help…

1 week ago
  • Uncategorized

Ateon Forges A Blockchain Pathway For Saudi Women

Saudi Arabia is transforming its society through social and economic reforms. In line with these reforms, the Saudi Government relaxed…

1 week ago
  • Uncategorized

The Top Healthcare Penny Stocks For 2020

In case you didn't know, the healthcare sector is massive. The size is barely fathomable. In fact, healthcare is almost…

1 week ago
  • Altсoins
  • Bitcoin
  • Exchange
  • News

Top Running Cryptocurrencies January 4th, 2019

One of the top performing cryptocurrencies of the day is REPO. REPO (REPO) is currently up 72.75% compared to USD…

7 years ago
  • Blockchain
  • Business
  • News

Gaming Giant Atari Plans to Bring Its Popular Games on Blockchain Platform

As the world is moving towards Blockchain, gaming giant Atari too wants to dip its toe into the emerging technology.…

7 years ago
  • Altсoins
  • Blockchain
  • Business
  • Exchange

Overstock’s tZERO Working on a Crypto Token to Trade Cobalt

Private equity firm GSR Capital has hired tZERO, an Overstock.com subsidiary, to develop digital token for trading cobalt. Overstock said…

7 years ago