Cryptocurrency Petro Will Become The Official Currency In Venezuela

To counter the soaring inflation which is predicted to mount up to a million percent this year, Venezuela’s President Nicolas Maduro gave the decree that its cryptocurrency Petro or petromoneda, launched in February 2018, should become the country’s second official currency.

By August 20, two new official currencies will appear in Venezuela: the “sovereign bolivar” and the Petro cryptocurrency, which will be interchangeable. It was assumed that his plan was to bypass the tough international sanctions imposed on his government by conducting international trade with Petro, and not Bolivar.

According to the confirmation of the cryptocurrency Petro should not only be used by the state oil industry, it must also be tied to a new “sovereign bolivar”, which means that Petro will be technically the official payment means of Venezuela. The new Bolivar is just a re-edition of the old one, but with a bizarre seal on it and a lower cost.

The hyperinflation index in Venezuela has recently reached one million. According to the recent reports the coffee, once costing only 450 bolivars, now costs one million. Bolivar is so depreciated that one million bolivar is equivalent to about 30 US cents.