Petro is the new cryptocurrency that has been sanctioned by the government. It is actually designed to try and boost the bolivar and this is the country’s inflation plagued currency. Of course, international experts have warned that there are very blunt words for Petro and this is all because it is a scam that is based on top of another scam. Farias is known for being dressed smartly and he is also known for having a short stubble as well. He launched a company called Cryptobuyer and this launched well over 3 years ago. They want to try and help Latin Americans to try and use cryptocurrencies so that they can try and protect their own savings and even their salaries as well. Cryptocurrencies may be volatile and when you look at Bitcoin you will see that this especially the case. Cryptocurrencies such as Bitcoin have plummeted from its peak and when you look at the consumers that are in Venezuela you will soon see that it is stable. Hyperinflation however is pushing the country to the brink of a huge economic collapse. When you look at the whole thing from a logical situation you will see that launching a fiat currency is a very clever move. This is not the case at all. The International Monetary Fund has forecasted that the economy will shrink by around 18% this year alone. Inflation on the other hand is set to surge by well over one million percent. People are scared and more than 400,000 people have also tried to cross over the border as well. Brazil has also seen a massive surge in illegal immigration as well and this is really important to take into consideration.
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So when you look at the government in Caracas, you will soon see that they believe that they can get the situation back under control. They believe that they can do this with some unusual economic measures. Cryptocurrency aside, it’s important to know that the state has relaunched their paper and coins currency. They have done this as the sovereign bolivar. Of course, the traditional bolivar has been devalued and this has been the case by over 95%. They have also dominated it as well. For one USD you can actually get six million bolivars and this is shocking when you look at the fact that you once were able to get 250,000. The move is not without any kind of precedent however. When you look at 2008, Hugo Chavez replaced an incarnation of the currency with his own bolivar fuerte. This knocked three zeros from the end and the same thing is happening now. The only difference is that there is a smoke curtain and they are now stating that they are going to use blockchain technology and the Petro as well. Roger Benites who is the chief executive over at Bitinka has come out to say that they are operating in many Latin countries.
A new currency won’t help solve the problems that are happening now because they are all to do with the economic crisis that is happening in Venezuela. The Petro was announced in December and this is at the peak of the bubble. It has been emerging for quite some time and this is after Venezuelans were trying to raise billions and billions of dollars on the back of whitepapers. These outlined the initial coin offering but it is safe to say that the cryptocurrency world was somewhat bemused. They were curious as well but this might possibly be the first time that any government would actually choose to issue their own digital money. When you look at the bigger picture you will see that the Petro has some connection to this world that we live in. When you compare it to the things that are happening right now it isn’t hard to see that other things are happening in the cryptocurrency world at the time and that maybe this isn’t some kind of strange concept at all. This comes from Aaron Stanley who is from the blockchain firm Sweetbridge. Currencies may be disruptive to say the least but when you look at the Venezuelan context you will soon see that the Petro actually looks like a folly. They are very savvy when it comes to cryptocurrency but they are being forced into learning more about it because the whole thing is necessary. They are being forced to try and survive in an economy that is bring crippled and for quite a few months now, they have been trying to put all of their savings into Bitcoin. They have done this to try and stop the collapse of the bolivar so the whole thing is very interesting to say the least.