Nicolas Maduro – Venezuela‘s current president, commanded banks in the country to adopt the petro - an oil-backed cryptocurrency as a unit of account.

As of now, all financial establishments in the South American country will have to employ the petro currency, as well as the Bolivar, which is the Venezuelan fiat currency.

With the help of the petro cryptocurrency, President Maduro has a plan to relieve the economic crisis, thus, reducing the rise in inflation and the empty market shelves. For half a decade now, Venezuela has experienced an economic recession and a high rate of inflation.

The International Monetary Fund, which is an organization situated in Washington, D.C., predicted that inflation will reach 1,000,000% in 2018. That number is disturbing enough and citizens are fleeing the country, seeking suitable ways to escape the economic crisis. More than 2 million people out of a total population of 30 million, have already left the country.

The petro cryptocurrency launched this year was intended to provide financial aid and avoid pending sanctions by the United States.  As it emerged,  the petro, also known as petromoneda, received mixed reactions both enthusiastic and critical.

Shifting to the latest crypto, the Bolivar was named the “Sovereign Bolivar“ and was devalued by 95%. The petro, however, is backed by the country‘s oils and mineral resources.

Banco Central de Venezuela, the principal bank in the country, presented an Android app, meant to help citizens easily adapt to the petro. Furthermore, it will also help them understand the changes that are currently undergoing.

Even though the newest crypto is 6 months old, improvements have just started to begin. President Maduro renamed the petro as the official currency of Petroleos de Venezuela – the oil and gas corporation of Venezuela. The second accounting unit will be in use as of next Monday.  

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