Venezuela introduced its state-backed cryptocurrency, the petro and now the President of the country has ordered all banks to adopt the new digital currency as of this past Monday.
Venezuela is suffering from a huge economic and political crisis, with the US sanctions coming in force with hunger and even water crisis in the capital. Thus, the government introduced the petro – the country’s first state-backed altcoin in order to stabilize the situation.
All banks, both public and private, must now work with the bolivar and the petro. With a significant immigration from the country, Nicolas Maduro, the President of Venezuela, hopes that the country can survive the growing recession and political unrest with the cryptocurrency.
So, Venezuela now has two currencies. The Bolivar is the same as before, but with lower value and a brand new stamp.
One Petro coin is worth around $60, while the bolivar is tied to the value of the petro. The development of the petro is staggering, as Venezuela is the first country to accept a national cryptocurrency in order to save its economy by boosting the minimum wage and fighting inflation.