The Petro cryptocurrency continues its journey
Based on reports from a few financial institutions of Venezuela, the country has already started adopting the Petro cryptocurrency. The token is now a state-backed currency and was created in order to overcome hyperinflation in the country. According to a report from bitcoin.com, the countries two largest banks have been dominating clients account balances in the national cryptocurrency of the country.
There have also been reports that have noted that two other Banks will start working with the state token in the near future. As the token has recently become available for purchase there have been many that are willing to work with this new kind of monetary system.
The financial system is in ruins and needs a rebuild
The financial institutions follow the order of the authorities even when Venezuelans are not interested in state initiatives. The nation cryptocurrency the Petro is still not exchanged on crypto platforms and is not accepted as of yet as means of payment at trading spots in the economy.
The Venezuelan President Nicolas Maduro conducted the monetary reform at the end of August this year. This caused the devaluation of the bolivar to lose more than five zeros and introducing the Petro token as back up to the official currency.
According to reports the Petro token will have the entire emission of the nations cryptocurrency and will be supported by the Venezuelan oil, which is around $66 per barrel. The investigation on the oil, however, has still not been able to trace the oil production back to the supplies of the cryptocurrency tokens.
Previous reports have stated that the Blockchain and cryptocurrency startup “Dash” has launched a variety of services in Venezuela, by allowing crypto transactions to be transmitted with simple text messages. The reason for this decision is because of the fact that residents receive aids in tokens from abroad, and some people can not afford a smartphone with an internet connection. However, the knowledge of cryptocurrencies still needs to be spread in order to show people that only a simple phone is required with the right crypto wallet to receive and send cryptos, and in some cases, an internet connection is not required to transmit cryptocurrencies across borders.
What are your thoughts on these developments on the Petro? Please feel free to leave your comments down below.