On October 1st, 2018 the president of Venezuela announced Petro, the state cryptocurrency. Nicolas Maduro created Petro to try to save the country from the disastrous economic situation in which it finds itself and to circumvent the duties imposed by Donald Trump. The value of the Petro anchored to that of the oil.
After inviting foreign investors to buy the Petro now Maduro has ordered the largest bank in Venezuela, the Banco de Venezuela, to open counters dedicated to the cryptocurrency in each of its 790 locations in order to facilitate the purchase and use of Petro. Maduro commissioned the creation of 1 million wallets and distributed them among the youngest citizens for whom educational initiatives on cryptocurrencies are planned. The wallets will also contain a currently unknown amount of Petro.
#EnVivo | Pdte. @NicolasMaduro: Doy la orden expresa para que se abran taquillas de transacciones de El Petro en todas las agencias del Banco de Venezuela#TrabajoPazYProduccion#10AñosBDV pic.twitter.com/mTMy8j2xs7
— MPPEF (@MinEcoFinanzas) July 3, 2019
These are the words of Maduro during an event to celebrate the thirtieth anniversary of the nationalisation of banks:
“I am giving the explicit order to open Petro transaction desks at all Banco de Venezuela agencies”.
These offices can also facilitate the exchange of money between FIAT and Petro, favouring its adoption.
Petro (PTR) +25% on local exchanges following the announcement
Maduro is doing everything in his power to promote the country’s cryptocurrency. Foreign funds are needed to support Venezuela’s crisis economy, and Petro is one of the few means by which the regime can finance itself by circumventing sanctions.
The big problem is that it has no market outside the South American state, so those who buy it from abroad cannot really use it. Not least because, for example, it is not tradable on any exchange, so the only thing a foreign investor could do is to hold it.
José Angel Alvarez, president of the National Cryptocurrency Association (ASONACRIP) said he was happy about this news because the infrastructure of the Banco de Venezuela can make an important contribution to the adoption of Petro in Venezuela.
This is what he said:
“We should also note that Banco de Venezuela is the most important bank in the Venezuelan financial system and has the most significant number of clients. With this decision, this bank would become one of the exchanges with more physical offices in the world”.
According to Alvarez, Venezuela is trying to change the financial reality of the country and, if it is successful, it could soon be followed by other nations.
Following Maduro’s announcement, the value of Petro (PTR) increased by 25% from 0.004 to 0.005 BTC each.