Business & Finance

Venezuela’s President Turns to Global Trade After Asking Banks to Adopt Petro

In past, Venezuela’s president, Nicolas Maduro ordered banks of the country to adopt Petro, country’s cryptocurrency. The step taken by Venezuelan president met several responses back then. Recently, Nicolas Maduro has announced another approach to deal country’s inflation and unstable economy effectively, with the help of Petro. He is all set to introduce Petro on an international platform to counter economic problems of the country. He announced that from October onward, Petro will be used in global trade.

As Venezuela is suffering from inflation and under these circumstances, Petro aims to find some relief for country’s economy. That’s why success of Petro is influential to Venezuelan economy. Annrhefn, Austrian economist, scientist and author, told BlockPublisher the factors that determine the success of Petro in global trade. Upon asking that whether Petro’s acceptance in global trade could bring any good to the nation, he said;

It would. For that to happen it would have to be scarce. The opposite of the Bolivar, and Venezuelan Socialism of the last decade. 

Nicolas Maduro revealed his latest plans for Petro on a television show where he said;

On October 1st, the Petro will enter the streets to become a means for commodity exchange, purchase and convertible currency for the whole world.

Apart from now using Petro on an international platform, Maduro used Petro in past to replace bolivar, nation’s fiat currency, with Bolívar Soberano. Bolívar Soberano, tied to Petro, stripped five zeros rather than three. Regarding significance of Petro behind the Bolívar Soberano, he said;

The only Petro in the world is in monetary terms, the concrete realization of the immense national oil wealth, which provides sustenance to the Sovereign Bolivar and a new international currency of free exchange in convertible currencies. Creation of Venezuelan genius!

As Petro is will be linked in global trading, it must be noted that previously, Donald Trump, U.S. president, approved sanctions against Venezuela’s cryptocurrency. The executive order read;

All transactions related to, provision of financing for, and other dealings in, by a United States person or within the United States, any digital currency, digital coin, or digital token, that was issued by, for, or on behalf of the Government of Venezuela on or after January 9, 2018, are prohibited as of the effective date of this order.

Petro’s performance on an international platform is dependent on several factors. However, its performance will fore sure clarify its potential for serving Venezuela and its economy in the future.

Fatir Malik

Electrical engineer by profession, turned into blockchain developer. Fatir contributes regularly with his insights about latest developments in fintech sector. Contact the editor at editor.opinions@blockpublisher.com

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