Petro Comes To Venezuela’s Rescue During Hyperinflation

BTC Wires: While news about a recent hyperinflation in Venezuela has caught the attention of Economics experts worldwide, this indeed is a dire time for the nation as international sanctions are becoming a cumbersome burden for citizens. Interestingly, in the wake of this crisis, Venezuela is seen to be recovering and emerging as a ‘post-fiat’ nation from the ashes of its ongoing financial fires.

Going ahead with the recently talked of oil-backed crypto Petro, Nicholas Maduro has been quoted making plans about amalgamating the exchange rates of their national currency, Bolivar with Petro, which is to be harnessed by an increased minimum wage. Maduro was quoted saying:

“They’ve dollarized our prices. I am petrolizing salaries and petrolizing prices. We are going to convert the petro into the reference that pegs the entire economy’s movements.”

Maduro threw more light on the subject of Petro when he announced that Petro initial value will be set at $60, which is equivalent to 3.600 bolivars. If more news from Breaker are t be believed, Maduro also stated how the minimum wage of the Petro will be set at 1,800 sovereign bolivars.

Why is Venezuela so hopeful with Crypto?

With regard to the sort of disaster that the nation’s economy has experienced, the International Monetary Fund(IMF) has made claims on how the sporadic hyperinflation will gain more prevalence by the end of 2018.

Additionally, Venezuelan president Maduro has been rather caught up in a political hold up ever since U.S. implied strict restrictions on Venezuelan finances. Several political analysts have not hesitated from calling this an attempt by U.S. president Donald Trump to corner Venezuela.

However, even Maduro hardly has a clean slate in the matter as the ecosystem was stirred about Petro right from the time of its official press release. Blockchain maestros like Vitalik Buterin denounced Petro, claiming that the government was just reevaluating bolivars based on the oil prices instead of promising any oil. Adding more to the matter, Francisco Monaldi expressed how the state was hardly doing justice to its oil reserves as a backing source.

Zeroing down on the problems at the grassroot level, a south Venezuelan journalist has this to say:

“They keep giving Petro commercials a lot of airtime, but people are generally too busy trying to survive to really care. People are way more interested in the animal lottery.”

Nevertheless, despite a sense of an unpopular wave around Petro, it still cannot be ignored how Venezuela is becoming the playgrounds for a futuristic time which may also be dubbed as an upcoming ‘post fiat’ era.