The petro cryptocurrency

In recent months the black market value of the Bolivar has rapidly depreciated and is currently over , to the dollar. Due to the depreciation of the Bolivar and the difficulty of obtaining hard currency, the use of cryptocurrencies such as Bitcoin is becoming increasingly popular in Venezuela. The recent surge in the value of bitcoin has also made converting Bolivares more appealing to many Venezuelans. Cryptocurrency is also appealing to the government of Venezuela as a way to work around economic sanctions. As recently as January 9th, the Venezuelan parliament voted against the issuance of the Petro.

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WATCH RELATED VIDEO: Venezuela Launches ‘Petro’ Cryptocurrency

Venezuela launches oil cryptocurrency

These are the core obsessions that drive our newsroom—defining topics of seismic importance to the global economy. Our emails are made to shine in your inbox, with something fresh every morning, afternoon, and weekend. The South American country is due to launch a first phase of its state-created cryptocurrency today Feb. Venzuelan officials say they expect support from investors in the likes of Qatar and even the US.

All people need to do, according to the government website , is download their digital wallet. The so-called pre-sale that begins today will consist of tokens on the ethereum blockchain that can be redeemed for petros, according to a white paper pdf about the offering. The government will issue a total of Other governments are also investigating the cryptographically secured architecture behind digital coins like bitcoin.

That could be useful as more and more people conduct transactions digitally. Right now when you pay with a card or through your phone, the money generally has to pass from one bank or financial services firm to another. A sovereign currency issued on a blockchain-style ledger could be a digital form of cash—potentially transferred directly between users. Venezuela and Russia—which is considering a crypto form of the ruble, according to the Financial Times —want to use the technology for their own ends.

These countries have been battered by US-led sanctions which can cut them off from the American banking system, making it hard to obtain the dollars necessary for many types of commerce. The dollar enables American governments to exert enormous force and influence without having to fire a missile or write a line of malicious computer code, and getting out from under the dollar has long been a dream for these countries. Even though Venezuela is economically feeble, these ambitions are something Washington must pay attention to, he said.

Granted, people are pouring money into cryptocurrencies that were explicitly designed as a joke , suggesting that Venezuela could somehow benefit from the mania. By providing your email, you agree to the Quartz Privacy Policy. Skip to navigation Skip to content. Discover Membership. Editions Quartz. More from Quartz About Quartz. Follow Quartz. These are some of our most ambitious editorial projects.

From our Obsession. New technology is upending everything in finance, from saving to trading to making payments. By John Detrixhe Future of finance reporter. Published February 20, This article is more than 2 years old.

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The digital currency went live on state-sanctioned crypto exchanges earlier this year, and is now slowing being adopted as a means of payment by merchants and retail stores across the country, according to data from the government of President Nicolas Maduro. The launch of PetroPago gives the beleaguered petro a big boost. The state-backed crypto has suffered repeated blows to its credibility ever since it was first announced by Maduro, including a series of false starts and other delays. Through Instagram and Telegram groups, Venezuelans have for months used the petro to buy and sell products among themselves. But despite this positive news, the petro is still far from being the nationally accepted crypto that the Maduro government initially claimed it would be at launch.

The president of Venezuela, Nicolas Maduro, announced the creation of a Venezuelan cryptocurrency called the “Petro.” Petro will help.

Venezuelans try to beat hyperinflation with cryptocurrency revolution

The last several years have brought great economic difficulties for the country of Venezuela, whose native currency, bolivar, suffered a great loss of value due to extreme inflation. At the same time, cryptocurrencies were finally leaving the shadows and becoming a big trend around the world. This is why the country decided to create its own, national cryptocurrency backed by its oil supplies — Petro. The coin was supposed to represent a safe haven from the nearly-worthless bolivar, but also to help circumvent US sanctions. However, Petro, which was launched in , failed to attract users as Venezuelans were more interested in Bitcoin and altcoins. Now, Maduro has announced that he plans to bring the Petro back. He said,.

Petro (cryptocurrency)

the petro cryptocurrency

The president of Venezuela has announced a radical economic reform that will see the country's currency tied to the government's own petro cryptocurrency. Nicolas Maduro said the plan would involve devaluing the bolivar from , per dollar to 6 million — a drop of 96 per cent. Before the announcement, inflation in Venezuela was projected to hit 1,, per cent this year, though it is unclear whether Maduro's strategy will help reduce this. The currency overhaul will also be supplemented by a massive increase for the minimum wage, higher corporate tax rates, and increased subsidies for gas prices.

Cryptocurrency A cryptocurrency is a virtual or digital currency that uses cryptography for security purposes.

What is the Petro? Venezuela's digital currency

Economics Stack Exchange is a question and answer site for those who study, teach, research and apply economics and econometrics. It only takes a minute to sign up. Connect and share knowledge within a single location that is structured and easy to search. If this is true and the Petro is controlled by a government i. What is the reason to implement cryptocurrency in a manner that allows for greater ease of 'printing money'? Anyone follows the history and trend of cryptocurrency can tell you that, cryptocurrency has become speculative medium than a currency itself.

Venezuela: Launch of 'Petro' Cryptocurrency Raised $735 Million

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Venezuela has launched a cryptocurrency in an attempt to bypass tough economic sanctions imposed by the US government. · The "Petro" is intended.

The Petro cryptocurrency was a Russia-Venezuela joint venture

By Paddy Baker. Jun 2, By Danny Nelson. Mar 26,

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RELATED VIDEO: Meet the coder asked by the Venezuelan govt to fix hyperinflation with a state-backed cryptocurrency

Daniele Bianchi does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment. Venezuela is suffering one of the worst economic crises of modern times. Read more: Explainer: what are initial coin offerings ICOs and why are investors flocking to them? Any rational investor would probably steer well clear of the m Petro made available. The ICO is obviously a way to raise money by getting around the sanctions against Venezuela, which prevent it from issuing bonds or securities in the regular financial system. That said, the Petro certainly represents a very interesting experiment.

An executive order bars the use of any Venezuelan cryptocurrency issued since 9 January, including the recently launched petro.

petro cryptocurrency

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Venezuela Petro cryptocurrency use blocked by White House

The Venezuelan cryptocurrency is a question mark, an oddity, a riddle wrapped up in an enigma. Or controversial. Definitely a Scam-Currency.

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