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| Venezuela is trying to revive its digital currency |
Venezuelan President Nicolas Maduro has issued a decree requiring airlines leaving Caracas, the country's capital, to pay for fuel using the country's oil currency, which is a deficit in South American countries.
The Venezuelan president is working to revive this cryptocurrency by trying to revive the controversial coin in his annual address to the ruling constituent assembly. Petro currencies are banned in the U.S. and are classified as fraud by some risk rating agencies.
The socialist leader said: I decided to sell all the fuels PDVSA sells to airlines operating international airlines with Petro, and Maduro also benefited from using Petro parts to pay for national document services, including passports, taxes, and service.
Venezuela announced the currency, with the support of Venezuela’s huge oil reserves, in October 2017, and was sold in February 2018 to bypass extensive U.S. sanctions and overcome the chronic liquidity crisis.
The Venezuelan president wants this virtual currency to become a popular payment method for Venezuelans, but most people do not know how to use it, and risk assessment sites like icoindex.com describe the currency as a scam.
While Petro currencies did not raise investor confidence, other cryptocurrencies have proven to be a haven to prevent excessive inflation in Venezuela. In December last year, Maduro agreed to reward public servants with Petro spare parts, but that was quick. Petro goes to Bolivar.
Last week, the government banned oil and gold exchanges with Bolivar, and the Venezuelan president signed a decision to sell 4.5 million barrels of 30 million barrels of PDVSA in approved reserves in Petro.
It should be noted that Maduro did not specify whether only Venezuelan companies or international transport companies were involved in the fuel payment process that started at Caracas Airport.