The Petro is Born!

Venezuela Gives Green Light for Cryptocurrencies Payments

The week ended with Venezuelan President Nicolas Maduro giving a big ‘thumbs up’ for the future of cryptocurrencies which will be accepted for payment and trades with the Venezuelan government services and some national companies.

State enterprises such as PDVSA (Petroleum of Venezuela), PEQUIVEN and the Venezuelan Guyana Company have been instructed to receive payments in Petro convertible crypto-coin. This means to trade with these companies all sales and purchases much be settled using the Petro and Manduro also confirmed that tourist related services will accept any cryptocurrencies.

Gas stations, near the border with Colombia and Brazil, are also getting in on the act by accepting payment in cryptocurrency along with airport related services for national and international airlines.

First Country to Recognise Cryptocurrency as Legal Tender

This means that Venezuela is ‘The First Country’ to recognise cryptocurrency as ‘Legal Tender.’ Way to go Venezuela!

The Petro is Born!

With its launch of 100 Million petro tokens the government expects to raise $6 billion which promoted Maduro to make a bold statement that the petro is born and that this will have fantastic impact on the welfare of Venezuela. He also added that the world’s most important companies are with him and that contracts will soon be signed with investors expected from Qatar, Turkey, the US and Europe. But don’t expect exchanges in the plummeting Venezuelan bolivar initially although this could become an option in the future.

4 Years of Financial Meltdown

Stabilisation is very much the name of the game right now for Venezuela as the country has been in financial meltdown for the last 4 years suffering the worst crisis in its history and a devaluation of the Bolivar. Manduro regards the petro a key ingredient in this process promoting development, infrastructure and educating the younger generation in electronic mining, economics, coding, cryptography and network security.

The Petro – Controversial or Not?

So in a crisis hit country is this a good play or not? Well the Venezuelan government definitely believes it is and sees the move as a way to overcome their US and EU imposed sanctions. Although on the down side opposition leaders are adamant that the petro is illegal plus there are concerns that those jumping on the bandwagon, and lumping on, could quite quickly lose their investment. But Venezuela is thinking big, clearly tuned into the crypto market, and looking to end years of financial misery with the birth of their petro.

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