Venezuelan president has once again announced that indigenous Venezuelan cryptocurrency, Petro, is critical to the nation’s economic discovery. He said that the state-issued crypto will be a major focus of the country’s government in 2020.
Venezuelan government according to Blomberg will focus more on making Petro a key part of the country’s economy.
We’re opening a path to a new economy, to break old protocols and bureaucracies. The crisis forced us to strengthen our creative capacity, to find answers where we didn’t have them. It also made us seek innovative strategies to overcome difficulties and adversities Maduro said in an address to the Parliament.
To ensure that the nation’s crypto becomes an integral part of the country’s economy, there are certain plans in place already.
Venezuela will begin selling part of its crude reserves in Petro. Venezuela’s President also declared that citizens will be mandated to pay utility bills and file tax returns in Petro.
Maduro also said that airlines in the nation’s capital, Caracas, must pay for aviation fuel in Petro. Also in 2018, the government decreed that Petro would be the accepted payment means for passport fees.
The Venezuelan government also aimed at making Petro a part of citizens day to day lives by paying salary bonuses and pensioners allowances in Petro. They also used it to pass funding to governors and mayors. And so on, with a variety of uses. However, the crypto has not been well accepted by Venezuelan citizens. They prefer Bitcoin and Dash as it continues to be popular within the country.
Dash is very popular in Venezuela that it is being used as an example of the crypto’s utility potential. Public oil firms have also been known to pay suppliers in Bitcoin.
According to Venezuelanalysis.com, there seem to be several problems wrong which is why Petro is not yet widely accepted.
According to them, the issue of the Petro’s multiplicity of functions and tasks is not necessarily one of variety. Rather, they are the multiple contradictions that arise when you look at it all together.
Venezuelan analysis explained that the functioning of a cryptocurrency is already an issue in itself, and Petro brings further contradictions as it is backed up by oil and is intended to be used as a currency, all raising the level of complexity.
In this sense, everything indicates that the main characteristic of the Petro is that it tries to be two opposing things at the same time, and so it’s very difficult to know whether it will work or not According to Venezuelanalysis.com.
However, part of the issues hampering the adoption of Petro is the apparent difficulty in obtaining the national crypto and the unwillingness of businesses to drop the U.S. dollar. President Maduro maintains that apart from driving economic recovery, increased Petro adoption will also stop the money flow into criminal organizations.
The country is also working on creating a payment system powered by cryptocurrencies.
The move is part of efforts by Maduro’s administration to move away from the dollar-denominated international trading mar