Serious problems of the national economy of Venezuela led to the fact that the country began to lack even toilet paper. According to the President of the country, a way out of this situation is possible by introducing its own cryptocurrency. As a result, Venezuela became the first country to launch its own cryptocurrency. But has the economic situation improved from this?
Venezuelans actively used cryptocurrency even before stateization
US sanctions, high inflation rates, corruption in food programs and other problems have led to an economic crisis in the country. The population and the state needed to adapt to the negatively changed conditions as soon as possible. As a result, in order to survive, Venezuelans began to widely use cryptocurrency.
In December 2017, the president of the country expressed a fair opinion about the need to stabilize money circulation in the country, and he saw the path to the restoration of the Venezuelan economy in the stateization of the cryptocurrency. According to the President of Venezuela, the introduction of the state cryptocurrency will allow the country to gain financial independence and raise the living standards of Venezuelans.
El Petro as a way to overcome the economic crisis
"El Petro" is the name of the national cryptocurrency of Venezuela. According to official sources, the state cryptocurrency is pegged to oil. An interesting fact is that its logo resembles the new Russian ruble. Venezuela's state cryptocurrency also depicts the letter “P” with a horizontal underline. In principle, this is not surprising, because Venezuela often interacts with Russia (for example, in the supply of auto parts and car parts). The international treaty on friendship and cooperation between our country and Venezuela was signed back in 1996.
By introducing the official cryptocurrency, Venezuelans were not only able to purchase food, necessary things, pay for services provided, etc., but the state also began to use cryptocurrency for settlements, in particular with other countries (for example, in mutual settlements with Palestine).
Expert opinion on the introduction of state cryptocurrency in Venezuela
According to the lawyer A. S. Treschev, the introduction of the national cryptocurrency will really allow Venezuela to bypass many difficulties and, first of all, the US sanctions. Economist V. I. Ginko believes that, despite the decline in the bitcoin rate, the cryptocurrency does not lose its relevance.
The current state of the Venezuelan economy
Unfortunately, the introduction of the state cryptocurrency did not lead to a quick resolution of the Venezuelan crisis. Despite the joint desire of the state and society to overcome the Venezuelan crisis, the state of the country's economy has not yet fully recovered. In fact, it has only slightly improved. Most likely, this is due to the fact that the introduction of the state cryptocurrency happened relatively recently and Venezuela has not yet had time to adapt to the new conditions. The country has just taken the path of forming a strong and independent economy.
