According to Nicolas Maduro, the Venezuelan government is successfully introducing the cryptocurrency Petro into everyday life across the country. Currently it plans to use PTR to sell oil. However, the reality is not as beautiful as they paint it…
Trade through PTR is flourishing?
According to reports by Elnacional.com, Venezuela intends to sell oil and some of the gold it produces for the country’s cryptocurrency Petro (PTR). Nicolas Maduro himself informed about these plans. Moreover, he revealed that Venezuelan oil, iron ore and steel are already being sold for Petro.
We signed an agreement to sell oil, steel, iron and aluminium. Now we will also sell some gold for Petro
– told Maduro.
Moreover, he confirmed that transactions via virtual currency are a response to sanctions imposed by the United States in 2019. According to Maduro, the government has successfully introduced its own crypto into everyday life. He also stressed that in December last year, the authorities provided pensions and public sector workers with benefits in this form.
An illusory reality
But not everything is as colorful as Maduro presented it. After pensioners and officials got a Christmas bonus in Petro cryptocurrency, they decided to go shopping. It turned out, however, that the supermarkets were not adapted to accept this form of payment. What’s more, the benefits were only 0.5 Petro, or $30.
Although Maduro himself spoke about Venezuela’s progress in PTR transactions, the whole process was a bit more complicated. However, this was not said. The biggest problem was the number of points that actually accept this type of transactions. With a population of around 32 million people, there are only 4,800 companies in Venezuela that actually serve the cryptic Petro.
What’s more, in order to receive the benefit, one had to wait up to several hours in line without end. This is humiliating! – a 70-year-old pensioner complains. But that’s just the tip of the iceberg. In Venezuela, there are two ways of making payments in Petro cryptocurrency: with a biometric system or a special mobile application. One of the officials told the media that this second solution is too complicated for most citizens!
Of course, there were also people who did not see any problem in all this. And Maduro himself praised the payment of benefits in petro cryptocurrency on Twitter .
El Petro es una maravilla y un milagro que llega a nuestros trabajadores, trabajadoras, pensionados y pensionadas del país, para que hagan sus compras. Es una nueva experiencia única y extraordinaria de nuestra economía. ¡Somos Ejemplo para el Mundo! pic.twitter.com/05R381t69Y
— Nicolás Maduro (@NicolasMaduro) December 28, 2019
Petro Cryptocurrency- what was it for?
The PTR was issued in October 2017. Its sale began on February 20, 2018. It was, in a way, the last resort for a hyperinflation-ridden Venezuela. Cryptocurrency Petro has full coverage of Venezuelan oil resources. This in turn represents hope for an improvement in the economic situation in the country.
However, since the introduction of the PTR, the Venezuelan government has been trying to force its citizens to apply it. What is more, since the issue of the White Paper of Petro, this project shows signs of centralisation. This, in turn, means that it will never match Bitcoin, which is in the hands of communities, not governments.