Maduro Plans to Denominate Bolivar and Peg It to Petro Cryptocurrency

Published on 26 Jul. 2018
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In August, Venezuelan government plans to carry out a grand denomination, depriving bolivar of five zeroes at once, informs the local media resource Nacional. The president Nicolas Maduro revealed the information on the local TV and radio channels.

Besides this, Maduro strives to increase the circulation of the first national cryptocurrency Petro so he will peg bolivar to Petro. At the moment, 1 US dollar costs 3.5 million bolivars. The monetary reform will be carried out on August, 20. Maduro added that the government would release new bolivar to this event, which would lack five zeroes.

The new monetary cone will provide the new means of strengthening the oil cryptocurrency Petro to radically stabilize and change the commercial and financial life,

 - he added.

Today, Venezuela suffers from the severe economic crisis that has started in 2013 and grew worse because of the drop in oil prices. The country began to experience a deficit of everyday goods, and the people accused the government of their problems. In 2016, the state had around 82% of the poor population, and the political crisis was added to the economic one. Corruption and inefficient financial management caused almost total exhaustion of foreign exchange reserves needed for purchasing supplies, medicines and everyday goods abroad. From 2014 to 2017, the mass protests against the government and the president flooded Venezuelan streets.

To support the minimal level of life, Venezuelans actively use cryptocurrencies to buy goods and food. The volume of Bitcoin trading increases every week.

Recently, we’ve informed that, after receiving a small donation in NANO, the Reddit user from Venezuela started to gather funds to purchase supplies and medicines for his neighbors and families through the Reddit community.

The Venezuelan national cryptocurrency has appeared not long ago and made a lot of hype. In March, during Petro presale, Nicolas Maduro said about 5 billion dollars gathered and 186 thousand certified purchases registered. However, it looks like the introduction of oil cryptocurrency hasn’t improved the economic situation in the country.

The president tried to introduce his cryptocurrency to the world community, promising oil discounts in case of paying in Petro and offering Petro for exchange listings. However, international delegations didn’t reach any success, except for the Russian КamAZ, where they agreed to buy the parts for these trucks for Venezuelan cryptocurrency.

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