Official cryptocurrency – Petro

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Venezuela is facing the possibility of linking its super-inflated national currency to Petro, the digital currency that is probably the most controversial in the blockchain-based world.

The Bolivar, which fell from $0.01 to $0.0000040 in February, was the main reason why Venezuelans started using a different type of currency and became interested in digital currencies such as Bitcoin and Monero.

According to The Reuters, Venezuela has become the first country where cryptocurrency will be considered as an official national currency.

According to an official document of the Venezuelan government, Petro will be a digital asset, supported and issued by Venezuela and backed by their oil resources.

With the 96% devaluation of the Bolivar, the interest in the crypto Petro is growing, and it is planned to be resistant to a decline in real value, says the President of the country.

According to the document, 100 million Petro tokens based on NEM blockchain will be issued.

“I want the country to recover, and I have the formula. Trust me,” Maduro said in a nighttime speech broadcast on state television.

Regardless whether Petro succeeds and improves Venezuela’s economy, cryptocurrencies play an essential role in Venezuela. Every day, more and more Venezuela citizens have shown more interest in cryptocurrencies, especially in Bitcoin.  However, the government banned the import of mining equipment.

The International Monetary Fund (IMF) has recently forecast that inflation could reach 1,000,000% by the end of 2018. Maduro added that the plan was to devalue the Bolivar from 285,000 dollars to 6 million dollars, a 96% decline.

What is Petro?

The Petro, an oil-backed state cryptocurrency set to be released in both a pre-sale and an Initial Coin Offering (ICO), was first announced by Venezuelan President Nicolas Maduro in December 2017.

Even though Petro is backed by Venezuelan natural resources such as oil, gold, and diamond, economists see the idea somehow pessimistic.

Tell us what do you think, here in the comment section, or via Facebook.

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