After officially launching its local state cryptocurrency, the Petro coin, the Venezuelan President have ordered local industries to use the cryptocurrency for business transactions.
According to a video posted on Twitter by the VTV television network, Venezuelan President Nicolás Maduro ordered several state-owned companies to convert a percentage of their sales and purchases into the petro. He said (in rough translation):
“I have ordered the company PDVSA, Pequiven and CVG to, as state-owned companies, make a percentage of their sales and purchases on the Petro.”
PDVSA is a state oil and gas company that has been a target of US sanctions. Pequiven is a petrochemical company. CVG is the acronym of Corporación Venezolana de Guyana, a decentralized conglomerate whose subsidiaries include producers of precious metals.
Maduro made the statement during an announcement of the petro presale. He also said that citizens will be able to pay for fuel and tourism services in cryptocurrencies, including Petro.
The petro was created for the purpose of revitalizing the nation’s failing economy and also as a way to circumvent the US sanctions. With the petro’s presale still underway, and just a day after it reportedly sold $735 million on its launch, the Venezuelan government has announced its plan to launch another local cryptocurrency, the “Petro Gold”.
“Next week I will launch petro gold, backed by gold, which is even more powerful, and will strengthen the petro,” Maduro said in a speech on Wednesday.”
While the Petro is backed by oil, the President noted that the Petro Gold will be back by the nation’s precious metals. It is unclear if the Venezuelan president has referred to the central bank’s gold reserves, or its undeveloped mineral deposit. However, the nations approach to having its own virtual currency is being accepted globally as other countries seems to follow suite. Recently, both Iran and Turkey announced its plans to develop a local state cryptocurrency.
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