Venezuelan President Announces 'Petro', Plans To Uplift Country's Economy

Venezuelan President Announces 'Petro', Plans To Uplift Country's Economy

Venezuelan President Announces 'Petro', Plans To Uplift Country's Economy

A prudent citizen of that country would have protected his wealth better by holding a digital currency rather than the Venezuelan bolivar.

Venezuela - a country laden with financial sanctions imposed by the US government is now in a state of deep financial crisis.

Venezuelan President Nicolas Maduro said Sunday his country would create a cryptocurrency called the "petro" as it faces a "financial blockade" in the midst of crippling USA sanctions.

"Venezuela will create a petromoneda cryptocurrency to advance the matter of monetary sovereignty as it will help defeat the financial blockade and move toward new forms of worldwide financing for the economic and social development of the country", he said. Decisions like excessive money printing and currency controls have led to the price of bolivar plummeting by 57% against the U.S Dollar in just past one month's time.

Some of the opposition leaders ridiculed the announcement.

Washington has levied sanctions against Venezuelan officials, PDVSA executives and the country's debt issuance.

Maduro's pivot away from the US dollar comes after the recent spectacular rise of bitcoin BTC=BTSP, which has been fuelled by signs that the digital currency is slowly gaining traction in the mainstream investment world.

Venezuelan President Announces 'Petro', Plans To Uplift Country's Economy

Venezuela President Nicolas Maduro speaks during his weekly radio and TV broadcast on December 3, 2017.

The announcement bewildered some followers of cryptocurrencies, which typically are not backed by any government or central banks. The currency has lost 96% of its value this year.

Maduro's government has a poor track record in monetary policy. This is perhaps on par with Zimbabwe's decision to use the USA dollar as legal tender to bring monetary stability after many years of hyperinflation.

There is very little chance that Maduro's announcement will bring any sort of relief in the short run as several million Venezuelans are now struggling with poverty and can not even afford to eat three meals in a day.

Economists and opposition leaders say Maduro, a former bus driver and union leader, has recklessly refused to overhaul Venezuela's controls and stem the economic meltdown.

"It's Maduro being a clown".

04 de diciembre de 2017, 16:16Caracas, Dec 4 (Prensa Latina) The Vice President for Communication and Culture, Jorge Rodríguez, expressed his confidence in the possibility of an agreement with the opposition to achieve political, social and economic stability in Venezuela. On Sunday he said Venezuela was facing a financial "world war".

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