Venezuela's Maduro Vows to Revive Petro Coin in His Annual Address




(Bloomberg) -- President Nicolas Maduro pledged to revive Venezuela's failed cryptocurrency for everything from oil sales to passport fees in his state of the union address to the Constituent Assembly on Tuesday.

Maduro said state-run Petroleos de Venezuela SA would begin "exploratory sales" of 50,000 barrels a day in Petros, after which it would weigh selling all of the nation's production in the elusive cryptocurrency. Going forward, taxes and utility bills will also be paid for in Petros, he said.

"We're opening a path to a new economy, to break old protocols and bureaucracies," Maduro said. "The crisis forced us to strengthen our creative capacity, to find answers where we didn't have them, to seek innovative strategies to overcome difficulties and adversities."

Maduro's remarks signal efforts to resurrect the state-issued cryptocurrency rolled out with great fanfare in early 2018 that's yet to yield results. The Petro was introduced of as a way to navigate around wide-reaching U.S. sanctions that have cut the cash-strapped nation off from international capital markets. Shortly thereafter, the currency itself was sanctioned as well.

What Broke Venezuela's Economy and What Could Fix It: QuickTake

While stores are obligated to print prices in Petros and its exchange rate to the Chinese yuan or the Russian ruble is published by Venezuela's central bank on a daily basis, its remains largely symbolic. Banners with the Petro symbol adorn government buildings in downtown Caracas, yet most people have no idea how or where to buy one.

"Many people don't want to move to the Petro because their business is in dollars. We will look at them closely. The Petro will cut the mafias' hands off," Maduro said.

Maduro's remarks also mark a separation from the U.S. dollar, the currency that's been largely adopted in the hyperinflation-wracked country, and which the president credited with an economic recovery and resurgence of production in a November interview.

In September, Venezuela's central bank ran internal tests to determine whether it could hold cryptocurrencies in its reserves at the behest of PDVSA, which sought to send Bitcoin and Ethereum to the central bank and have the monetary authority pay the oil company's suppliers with the tokens.

--With assistance from Alex Vasquez and Fabiola Zerpa.

To contact the reporters on this story: Patricia Laya in Caracas at playa2@bloomberg.net;Nicolle Yapur in Caracas Office at nyapur1@bloomberg.net

To contact the editors responsible for this story: Daniel Cancel at dcancel@bloomberg.net, Robert Jameson

For more articles like this, please visit us at bloomberg.com

©2020 Bloomberg L.P.

COMMENTS

More Related News

Hezbollah Will Not Escape Blame For Beirut
Hezbollah Will Not Escape Blame For Beirut
  • World
  • 2020-08-05 11:50:00Z

(Bloomberg Opinion) -- As if the Lebanese haven't suffered enough. For months, they have been caught between an economic meltdown, crumbling public services, and a surging pandemic. Now they must count the dead and survey the extensive damage to their capital after two giant explosions on Tuesday.The blasts, especially the second, were so huge they were reportedly heard and felt in Cyprus. At least 100 people are reported to have been killed-that number will almost certainly rise-and thousands injured. A large expanse of the port and its immediate neighborhood lies in smoking ruin; miles away, streets are full of shattered glass.Prime Minister Hassan Diab's government says the explosions...

Venezuela
Venezuela's quarantine has increased anxiety, depression in some children: NGO
  • US
  • 2020-08-04 22:55:18Z

Over five months of quarantine due to the COVID-19 pandemic in Venezuela has led to an increase in anxiety and depression in some children, a non-governmental organization said Tuesday. Cecodap, a group focused on child and adolescent rights, said that in the first six months of 2020 it gave 1,458 consultations in 18 of Venezuela's 23 states. Anger, sadness and uncertainty are other common emotions children expressed, said Abel Saraiba, a psychologist who coordinates Cecodap's psychological services.

Official: US will extend support for Venezuela
Official: US will extend support for Venezuela's Guaidó
  • World
  • 2020-08-04 18:04:25Z

The State Department's top official on Venezuela said Tuesday that the Trump administration will continue recognizing lawmaker Juan Guaidó as the South American nation's interim president even if President Nicolás Maduro's government ousts the opposition from control of congress - its last major stronghold. "He will not change the legal status for many countries around the world - and especially for us," Trump's special representative to Venezuela, Elliott Abrams, told the U.S. Senate's Committee on Foreign Relations in a hearing Tuesday. As the body's leader, Guaidó last year claimed the nation's presidency, arguing that Maduro's reelection had been fraudulent, in part because top...

Amazon
Amazon's Market Power to Be Investigated by New York AG

(Bloomberg) -- Attorneys general from New York and California are partnering with the Federal Trade Commission to investigate Amazon.com Inc.'s online marketplace, according to people familiar with the matter, ratcheting up scrutiny of the world's largest e-commerce company.The three agencies will work

The Rich Still Want to Buy Their Ferraris
The Rich Still Want to Buy Their Ferraris

(Bloomberg Opinion) -- The business of making Ferraris is doing embarrassingly well in the pandemic.Covid-19 has affected the production and delivery of luxury cars, but not demand from the wealthy to acquire them, as analysts have noted. The financial impact of the virus on Ferrari NV's performance is, for now, looking like only one quarter of lost earnings. Management has handled the crisis well.Revenue fell 42% year-on-year in the second quarter, with vehicle shipments dropping 48%, Monday's results revealed. Production slipped after factories were closed to protect workforces, and the shuttering of dealers hampered deliveries. The company decided against taking the axe to capital...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Africa