Venezuela financial crisis reached its peak this year with a cosmic hyperinflation. According to the latest information, the inflation rate of the country was estimated at 83,000% in July, BBC reports and is expected to reach 1,000,000% by the end of the year. The critical situation made millions of citizens to fly out the state; the number of economic migrants is estimated around 2.3 million since 2014 and it keeps growing. People cannot even meet their basic needs as prices of food and everyday goods double every 26 days, the news portal states. Migration is happening to the neighboring countries like Colombia, Brazil, Peru, Ecuador but also to Chile, the United States and Spain.
The Bolivar becomes cheaper and cheaper with a skyrocketing speed. On 20th of August, the government removed five zeros off the currency in an attempt to save its value. The economic strategy, adopted by the ruling party of Nicolas Maduro, also issued new banknotes of 2, 5, 10, 20, 50, 100, 200 bolivars and launched two new coins.
Maduro sees the solution in the new country’s stablecoin Petro. The currency is pegged to the Bolivar which is backed by the oil supplies of Venezuela. 95% of the state’s income is raised through the oil trade. The president now explained that Petro will be also supported by natural materials like aluminum, gold, diamonds, and iron in various amounts.
On October 1st Maduro made a public announcement on television and stated that Petro will go live on 5th of November. The name is a short of “Petróleos de Venezuela”, the country’s oil company. The idea of the coin is said to be Hugo Chavez’s who wished to create “strong currency backed by raw materials”, the white paper of the crypto reads. The pre-sale of the Petro was launched on March. Now, from November the president expects huge sales of the crypto and hopes to recover the Venezuelan economy.
If you have bitcoins you can buy Petros, if you have Ethereum you can buy Petros, if you have dollars or euros you can buy Petros. And from November 5, the Petro … will go on sale to the Venezuelan public in sovereign bolivars,
The president said on the TV statement. The Petro is seen by financial experts as a good way to execute faster and legal transactions. As for this moment (5th October), the Petro costs $0.011182 USD, according to Coinmarketcap and a capitalization of $715,546 USD.