Petro, Venezuela's new virtual currency, is not the solution to the financial blockade
Posted: Tue Jan 07, 2025 7:06 am
The financial crisis that has plagued Venezuela for years has begun to reach alarming levels. The measures adopted by the Nicolás Maduro regime , far from solving the situation, have only served to collapse a battered economy that is worryingly suffocating a population close to social collapse.
Against this backdrop and with the international community watching closely, Nicolás Maduro has announced the creation of a new virtual currency . It is called the “Petro” whose value is based on the country’s oil wealth.
"Venezuela is going to create a cryptocurrency , the 'Petro', to advance in terms of monetary sovereignty, to carry out its financial transactions to overcome the financial blockade ," announced Nicolás Maduro on his weekly television program.
The news of the creation of a second currency by the Venezuelan government has not surprised anyone. The country's economy has collapsed. The nation faces rampant inflation, huge debts and strict sanctions imposed by the United States.
Nicolás Maduro has seen in the “Petro” a way out of his economic problems, backing his sri lanka phone number decision with the positive performance reported in recent months by bitcoin . But is this really a light at the end of the long tunnel in which Venezuela finds itself trapped?
The answer is no. Analysts and financial experts have been skeptical about the future of this new virtual currency . On the one hand, all we know about it is its name. Nothing is known about its operation and development except that its value is backed by the country's reserves of oil, gas, gold and diamonds .
Ángel Alvarado, a legislator and economist opposed to the Maduro regime , has not hesitated to mock the new virtual currency on social media, calling the president a “clown without credibility.”
Petro is NOT a cryptocurrency and it threatens the country! pic.twitter.com/oOhu8erZw2
— Angel Alvarado (@AngelAlvaradoR) December 4, 2017
Experts believe that Venezuela , given its current situation, will be unable to manage the crisis. Since Maduro came to power in 2013, the country's economy has been pushed to the brink of socio-economic collapse and the situation does not seem to be improving in the short term.
Moreover, there are many who have seen in the announcement of the “Petro” nothing more than a new tool for speculation . Let us remember that prices continue to fall, as does oil production. This fact has led to the Bolivar (Venezuelan currency) devaluing up to 95.5% in the last year against the so-called “black dollar”.
And we are faced with yet another of the many measures adopted by Maduro that, far from helping Venezuela, only harm its already punished population even more.
Against this backdrop and with the international community watching closely, Nicolás Maduro has announced the creation of a new virtual currency . It is called the “Petro” whose value is based on the country’s oil wealth.
"Venezuela is going to create a cryptocurrency , the 'Petro', to advance in terms of monetary sovereignty, to carry out its financial transactions to overcome the financial blockade ," announced Nicolás Maduro on his weekly television program.
The news of the creation of a second currency by the Venezuelan government has not surprised anyone. The country's economy has collapsed. The nation faces rampant inflation, huge debts and strict sanctions imposed by the United States.
Nicolás Maduro has seen in the “Petro” a way out of his economic problems, backing his sri lanka phone number decision with the positive performance reported in recent months by bitcoin . But is this really a light at the end of the long tunnel in which Venezuela finds itself trapped?
The answer is no. Analysts and financial experts have been skeptical about the future of this new virtual currency . On the one hand, all we know about it is its name. Nothing is known about its operation and development except that its value is backed by the country's reserves of oil, gas, gold and diamonds .
Ángel Alvarado, a legislator and economist opposed to the Maduro regime , has not hesitated to mock the new virtual currency on social media, calling the president a “clown without credibility.”
Petro is NOT a cryptocurrency and it threatens the country! pic.twitter.com/oOhu8erZw2
— Angel Alvarado (@AngelAlvaradoR) December 4, 2017
Experts believe that Venezuela , given its current situation, will be unable to manage the crisis. Since Maduro came to power in 2013, the country's economy has been pushed to the brink of socio-economic collapse and the situation does not seem to be improving in the short term.
Moreover, there are many who have seen in the announcement of the “Petro” nothing more than a new tool for speculation . Let us remember that prices continue to fall, as does oil production. This fact has led to the Bolivar (Venezuelan currency) devaluing up to 95.5% in the last year against the so-called “black dollar”.
And we are faced with yet another of the many measures adopted by Maduro that, far from helping Venezuela, only harm its already punished population even more.