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In Venezuela fuel is paid for in cryptocurrency
In Venezuela fuel is paid for in cryptocurrency
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In Venezuela fuel is paid for in cryptocurrency

By Marco Cavicchioli - 16 Jun 2020

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Venezuela has announced that almost 15% of all fuel payments in the country are made using the Petro cryptocurrency.

This was reported by the local information website UltimasNoticias.com, according to which at the end of the first week of use of the new currency for fuel payments about 15% of all transactions at national petrol stations were made in Petro, whereas at international stations this percentage rises to 40%.

According to the blog Geopolítica Coyuntural, this dynamic will allow Petro to regain strength in the Venezuelan financial system within 45 or 60 days, also affecting trading on the secondary market, allowing to build a stable economic structure for the cryptocurrency sector in the country. 

Indeed, Dagong International Credit Rating Group believes that Petro would be an innovative idea that could jeopardize the traditional economic system around the world. 

This last statement has the appearance of being just propaganda, so some caution is needed when judging this information. 

In fact, according to Geopolítica Coyuntural, Petro would be even better than the American dollar because it has a collateral. In reality, there have always been strong doubts on whether the assets pledged as collateral of Petro really exist, or are actually redeemable in exchange for Petro tokens. 

The UltimasNoticias.com website itself adds a tearjerker story to try to present Petro as a kind of panacea against poverty, obviously presenting President Nicolas Maduro as a benefactor who gives money to his citizens. 

The propaganda intents are so obvious that it is legitimate to have strong doubts about the truthfulness of the official statements regarding this cryptocurrency. 

In other words, there is a strong government propaganda campaign in favour of the State cryptocurrency, issued by the government itself, whose aim is probably to make people forget the implosion of the country’s fiat currency, the Bolivar, now literally burned by hyperinflation. 

In other words, Maduro hopes that the Petro can replace the Bolivar without suffering from the same problems, thanks to the collateralization of the tokens, but since this is still to be proven today it is difficult to say that the new cryptocurrency is really able to eliminate hyperinflation. 

What is certain, however, is that the airdrop of the Petro token commissioned by Maduro himself has not played in favour of this hope.

 

Marco Cavicchioli
Marco Cavicchioli

Class 1975, Marco teaches web-technologies and is an online writer specializing in cryptocurrencies. He founded ilBitcoin.news, and his YouTube channel has more than 25 thousand subscribers.

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