Nicolás Maduro, President of Venezuela, has decided to announce the creation of its own virtual currency named ‘Petro’. During a speech transmitted on the national TV Channel VTV, the president has communicated the information. The ‘Petro’ will be the first virtual currency issued by any country in the American continent.

The ‘Petro’ First National Cryptocurrency in America

During the public speech on December the 3rd, Mr Maduro has explained why the government has decided to issue this currency.

“Venezuela announced the creation of its own cryptocurrency. It will be called the ‘Petro’ (…) This will let us move towards new ways of international financing in order to allow the social and economic development of the country.

Venezuelan President holds a weekly TV show where he addresses the nation on various topics of public interest. This South American country is known for having the highest inflation in the world. According to government officials and President Maduro itself, it’s high inflation rates are created by elite individuals located in Miami.

Venezuela Maduro Petro

“They are people from different nationalities that are against Venezuela (…) these are whims of a bourgeoisie and of an imperialism that want to bring under control our country and the political system in Venezuela,” said Nicolás Maduro some time ago.

The ‘Petro’ will be the first cryptocurrency to be issued in America. CoinStaker could contact with the Argentinian Central Bank vice-president Lucas Llach who told us that they are not thinking about issuing, at the moment, any cryptocurrency.

Hyperinflation and Cryptocurrencies in Venezuela

From January to September 2017, inflation in Venezuela arrived at 536 percent, according to Reuters. These numbers are not seen anywhere else in the world at present time. This situation has make it difficult for individuals to transact goods or services. In order to make a regular purchase at a supermarket, Venezuelans need to carry big and crazy amounts of Bolívares (Venezuelan currency).

Bitcoin and Ether were growing as alternative currencies in the country. They help normal citizens to store their value that it is not safe under such a high inflation rates. Furthermore, Bitcoin and Ethereum made it easier to purchase goods and services without the necessity to use the Bolivar.

According to Mr Maduro, the ‘Petro’ will be backed by the country’s natural reserves. “It (‘Petro’) will be backed by the Venezuelan reserves of gold, oil, gas and diamond.” This currency will help the government to keep controlling its citizens. In Venezuela there is a big black market of different goods like tooth paste or paper roll. It is not possible to buy foreign currencies and Bitcoin and Ethereum miners are being persecuted by the police.

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