Venezuela continues to put its hopes into the country’s national cryptocurrency — the Petro. The new announcement stated that its government is creating a Petro-based salary system, as well as that its in-house currency will become a new unit of account.
Prosperity Through The Petro
Ever since Venezuela developed its oil-backed cryptocurrency by the name of Petro, the country has made numerous plans regarding its use cases and potential appliances. Now, they revealed plans to make Petro their new unit of account, which is to be used by the country’s oil firm PDVSA. Not only that, but they seem to be serious of the idea of creating a salary system that will see the country’s workers receive payments in crypto, rather than fiat currencies.
The country’s president, Nicolas Maduro, stated that Venezuela will receive its second accounting unit that will be based on Petro’s own value and price. The change is to come starting Monday, and it will be the second accounting unit of the entire republic.
Petro was originally introduced relatively recently, through a pre-sale that was held back in February of this very year. It was supposed to be a method of attracting foreign capital, which was expected to improve the economy of Venezuela, as well as to help the country bypass sanctions imposed by the US and EU. Additionally, it was created to amend the hyperinflation issue that has been troubling the country for years.
However, ever since it was introduced, it mostly aroused controversy, even within the country itself. Many claimed that it may even be illegal and that its white paper lacked a lot of important details. The US was especially concerned about its citizens falling for the ‘Petro scam’, which led to a ban on the use of Petro that was brought by President Donald Trump himself.
On the other hand, there were several arguments in Petro’s favor, like the fact that it made the process of paying settlements and taxes cheaper. Additionally, the Petro is easily converted to fiat currencies, such as the US dollar.
Why Venezuela Needs A New Salary System
Still, a lot of people see the Petro as Venezuela’s liberating tool, which is not difficult to understand, considering the country’s economic struggles. One of its citizens that goes as ‘Hector’ received a donation of around 0.5 Nano. This has attracted a lot of attention at the time, and while the amount is roughly $2, the account continued to grow, and ‘Hector’ gathered almost $950 worth of Nano. Thanks to this achievement, he can now provide for his family, which was next to impossible before he started dealing with crypto.
His own statement claims that his entire family of five was thrilled with the change in status. Despite the fact that the family consists of four adults, all of them working in different areas, their salaries were not enough to even provide them with enough food to last until the next payment.
This is due to the fact that the Bolivar, Venezuela’s national currency, is almost worthless right now. This is why the country’s president is making an effort to introduce the new salary system, which he believes will help stabilize the value of wages.
According to the president, the nation can make a total economic recovery by 2020, and will even reach prosperity and social stability. The new payment system is to start on August 20 and will mark the beginning of a new era for this country. The citizens of the country will be able to see the prices of the Petro and Bolivar in real time, and the explanation of the new system will be released for the citizens in detail.