The Venezuelan government has invented a new way of using the national cryptocurrency Petro: soon, citizens wishing to go abroad will have to pay for the documents through this digital currency.
Today Venezuelans do not feel much enthusiasm in regard to the national cryptocurrency, however, the government persistently looking for any ways of its application. Daily from Venezuela leaving hundreds of people, despite attempts by President Nicolas Maduro to restrain the record hyperinflation, resuscitate the ruined economy and circumvent mounting U.S. sanctions. The introduction of national cryptocurrencies El Petro, the oil-backed, was the basis of a plan to improve the socio-economic situation in Venezuela.
However, many Venezuelans don't have much faith in reform through government cryptocurrency, preferring just to leave the country. But this requires a passport, which soon will be available only after payment of the fee through Petro.
President Maduro and his socialist party diligently promoting this cryptocurrency, which causes multiple debates in society: some say it’s not backed by anything, others argue that Petro is not digital currency. Recently, the authorities of Caracas made it an official unit of account along with the denominated currency ― the Venezuelan Bolivar. Initially, the government tried to impose cryptocurrency to businesses and banks, and now decided to distribute it among citizens traveling abroad.
According to the Vice-President, Delcy Rodriguez, who spoke last week at a televised press conference, the cost of obtaining a new passport will be 2 Petro (7200 Bolivar or $ 115). It is noteworthy that the public release of the coins has not yet been implemented, although this is expected to happen on 5 November.
This year, President Maduro said that the cryptocurrency has attracted 735 million dollars in the first day of private presale. For Petro it was also released white paper, but recently its was fitted with additional explanations. In the new document says that cryptocurrency is provided by not only oil, but also gold, diamonds, aluminum, iron and other natural resources of the country.
Last week Maduro said that Petro doesn’t need to be mined like other digital currencies because it is the national currency and is already in the list of the six largest international stock exchanges.
At the same time, the Venezuelan authorities announced the creation of a new police unit that will deal with migration issues. Vice President Delcy Rodriguez said that the new force will guard the 72 checkpoints in ports and airports.