Venezuelan government urging citizens to use the Petro, this effort to succeed?
Venezuela launched the Petro two years ago as a way to navigate U.S. sanctions, which pushed Venezuela out of the international capital market. Despite continually promoting the use of the Petro and promoting it throughout government buildings in downtown Caracas, most Venezuelans don’t know where to buy the Petro and how to use it. And things got worse when it was reported that President Nicolás Maduro forced Venezuelan shops to use the Petro even though the currency was almost worth nothing.
The Maduro mechanism is registering pressuring stores in Venezuela to accept Petro
Venezuelan dictator Nicolás Maduro once again launched inspection armies across the country to enforce price controls as a means of controlling hyperinflation.
The Americas: The Maduro regime is reportedly pressuring stores in Venezuela to accept the government’s new digital currency, the petro, despite its dubious value. Image: Cristian Hernandez/Shutterstock
The move to demand payment by Petro is an attempt to strengthen the cryptocurrency and help Maduro reduce the country’s dependence on foreign currencies. Petro comes as crude oil exports are beginning to recover from U.S. sanctions on Venezuela and oil company Petroleos de Venezuela S.A. Oil exports rebounded in December, surpassing 1 million barrels per day for the first time since February 2019.
Raw buyers often use Venezuelan-based shipping agents to pay port fees. However, some Venezuelan crude oil buyers have stopped buying after Maduro began demanding payment of port fees with the Petro. Oil exports have stalled after the government announced this week that some maritime charges, currently being paid in euros, must be paid by the Petro. Buyers worry that payment could violate sanctions after the U.S. targets Petro cryptocurrency, calling it a scam.
However, it seems that Maduro is still adamant about his decision. And he did everything he could to promote the widespread use of the Petro throughout the country.
Venezuelans are also trading an increasing number of Bitcoin
Elsewhere, it is expected that the use of cryptocurrencies at retail locations in Venezuela will skyrocket to 10% by the end of 2020. Estimates will relate to the $ 25 million cryptocurrencies in annual retail transactions.
Cryptocurrency can now be paid at Burger King in Venezuela
In addition to Bitcoin, payments are accepted in Ethereum, Litecoin, Binance Coin, Dash and Tether stablecoin. pic.twitter.com/pntmIIkyC4
— Cryptoman33 (@Cryptomana33) January 5, 2020
Analysts’ predictions are based on the following:
- Major retailers in the country are ready to offer cryptocurrencies as payment options.
- The government pays wages using the Petro cryptocurrency (PTR), encouraging people to learn more about cryptocurrencies.
- Venezuelans see the cost-saving and convenience benefits of cryptocurrencies.
- Venezuelans are also trading an increasing number of Bitcoin.
The volume of bitcoin transactions on the LocalBitcoins peer-to-peer platform in Venezuela has just been printed at a new all-time high. According to the data tracking tool Coin.dance, BTC volume has increased by over 38% from Venezuela’s 263.3 billion bolivars to 363.4 billion for the week ending January 11.
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