Venezuela’s Petro to be used as Unit of Account
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Venezuela’s economy may be failing, and its fiat currency bolívar may be in decline, however that has not stopped Venezuela’s president from dipping his hands into cryptocurrency. Its national oil-backed currency Petro has been reported to be used as a unit of account in Venezuela.
Petro will now be used by the state oil company PDVSA as a unit of account, along with a new salary system and a pricing system for goods and services anchored to Petro.
“As of next Monday, Venezuela will have a second accounting unit based on the price, the value of the Petro. It will be a second accounting unit of the Republic and will begin operations as a mandatory accounting unit of our PDVSA oil industry,” the president of Venezuela Nicolás Maduro announced.
With the national currency falling, Petro will help regain the weak pricing systems and salaries that the workforce in the country earns. Thus it will boost the income of workers which as a result will drive economic growth.
The news is big as Venezuela will be the first country to introduce Petro in a manner which makes it almost equal to the national currency of bolívar. Venezuela will have the Petro and the sovereign bolívar from August 20th, meaning the sovereign bolívar will be indexed to the Petro leading to new beginnings to Venezuela’s economy.
The report also mentioned that the Central Bank of Venezuela (BCV) would “begin to publish the official figures of the value of the sovereign bolivar according to the Petro and the value of the petro according to international currencies.”
In 5 days time, you will notice new Venezuelan notes spread across the country.
Maduro also said that the BCV and private banks in the country have already received the new banknotes.
Twitter user Javier Bastardo asked an interesting question about what rate the sovereign bolívar will be indexed to in terms of Petro.
After all the announcements, is not clear the relation between the bolivar and $PTR.
– 1 $VES = X $PTR.
-Where are we going?— Javier ₿astardo 🍐🏴☠️ (@criptobastardo) August 14, 2018
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