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Nicolas Maduro Urges Venezuelan Residents to Invest in Petro Coin

Nicolas Maduro, Venezuela’s president, called on workers in his country to save money in gold and his cryptocurrency ‘The Petro’ during a salary shake-up Thursday. According to the local news source Noticiero Digital, in the next few weeks workers will be receiving their bonuses in the Petro coin, instead of fiat.

Nicolas Maduro and The Petro

Maduro said:

“In the coming weeks the payment schedule of the bonuses will be fulfilled with the new salary tables set in the petro, which is from the economic recovery program that started 58 days ago on August 20 and will begin to pay all the bonuses as it should be, and if you think about the future, think about saving […] think about the gold and petro savings plan.”

Since the very beginning, the Petro has been receiving negative feedback, from both inside and outside Venezuela. The digital currency is seen as a desperate attempt to pull the country out of its economic crisis, by having others pay for the country’s debt.

Just recently, the technology publication Wired led an investigation piece and described it as a “scam on top of another scam.”

“You could say that desperate times with a starving population result in desperate action,” says Jonathan Fry from Team Blockchain. “What is any fiat currency but a promise to pay its debts or at least to pay the interest on its debts.”

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The Petro coin is supposedly backed by oil, but that still remains unclear at this time. What’s ironic is Maduro has made Bitcoin mining is illegal within the country, which has landed many individuals in jail. The reason being is that mining requires a lot of electricity and currently, the government subsidizes electricity.

The Petro ICO is set to start on November 5th. Nicolas Maduro states that the Petro will be available on six major cryptocurrency exchanges, which are still known at this time.

The Venezuelan president is doing anything and everything to help raise his country out of its economic turmoil. Venezuela is known for its gold mines, and it seems gold may be the better investment option between that and the Petro coin.

What do you think?

Featured Image: Depositphotos/© JanPietruszka

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Venezuelan Banks Must Accept Petro

Two days ago, Venezuela’s President — Nicolás Maduro, ordered the nations banks to adopt the Petro digital currency, so now Venezuelan banks must accept Petro.

In a bid to reform the nation and alleviate the current Venezuelan economic crisis, Maduro is trying to get the Petro coin recognized as Venezuela’s second currency and now banks within the nation must accept the coin.

The hope is that by fixing the nation’s fiat currency to the newly created Petro, financial stability will be possible.

Venezuelan Banks Must Accept Petro

Venezuela’s economic situation is dire. By the end of this year, the IMF estimates that the country is going to reach inflation levels of 1 million percent. Poverty is obviously rampant and many people have fled to try and escape the crisis.

But others are putting their cash into digital currencies as a form of protection for their wealth. Currencies such as Bitcoin and Dash are popular among the masses, with Dash, in particular, becoming more widely accepted by merchants — Subway and Calvin Klein both allow people to pay with the digital currency.

Earlier this year, The Dash Foundation invested $1 million into educating Venezuelan’s about using digital currencies securely.

Economic Reforms

In the latest round of economic reforms, The Venezuelan President increased the minimum wage, the price of petrol, and VAT.

This includes a 3,400% increase in minimum wage and a VAT increase of 4%.

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Petro Coin

Petro was launched in February of this year. Maduro has faith in the coin to bring stability to his nation as he claims it is backed by Venezuela’s oil reserves. However, actual proof of this remains to be seen and the nation has remained divided on the subject since its inception. Even the US went as far as implementing sanctions against the coin. 

According to Russ Dallen, a managing partner of Caracas Capital Market, the Petro coin isn’t backed at all saying:

“They’re setting up a stand on the front porch of Venezuela to sell snake oil that’s essentially backed by nothing. People believe its backed by oil, but if you read the contract, it’s really not.”

What are your thoughts on the subject?

Featured Image: Deposit Photos/jkraft5

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