Venezuelan President Nicolas Maduro has announced that the price of petro, the national "cryptocurrency" of his country, has been increased from 3,600 sovereigns to 9,000. While the petro portfolio is not yet available, the Venezuelan government continues to sell the digital currency and issue purchase certificates to buyers.
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Excursion price for Petro
Maduro announced on Thursday the news of the rise in prices of petro, the so-called "Venezuelan" cryptocurrency ", effective Friday. The announcement was made at the same time as he ordered a 150% increase in the country's monthly minimum wage, the sixth rate hike this year. Bloomberg wrote Thursday:
The price of petro cryptocurrency will increase from 3,600 sovereign bolivars [Bs.s] at 9000.
In August, Maduro linked the price of petro to the sovereign bolivar (bolívar soberano), the main currency of Venezuela since 20 August. "Every petro, as the anchor point of the sovereign bolívar, will have a value of 3,600 Bs. S", announced at that time.
After the announcement of the Thursday of Maduro, the Venezuelan economist Leonardo Buniak explained that the petro "was worth 3,600 Bs.s because the Dicom dollar cost 60 and the oil cost 60," reports Atodomomento. He added, "now a petro is decreed to 9,000 Bs.s … you just devalued the sovereign bolivar compared to petro and over 100%", elaborating:
Anchoring the bolivar to petro is anchoring it to nothing.
Lack of cryptographic features
Buniak also said that "petro can not be called a cryptocurrency because the value was given by President Maduro and not the interaction between supply and demand," said the publication. He detailed:
When the president decrees that petro is worth 9,000 Bs, what he is saying is that petro is not a cryptocurrency but a debt security that is predetermined, [which] it can not be extracted. It is impossible to think that it is a cryptocurrency when its value is not given by the interaction between supply and demand.
Furthermore, the petro wallet is not available yet. The links to download them for Windows and Linux still make the message appear: "This wallet will soon be available for your operating system." In addition, Tarek El Aissami, minister of economy and former vice president of the country, previously explained that Google has removed the app for Android for the petro wallet from the Google Play Store.
Even the Petro code is not available to the public, so an independent confirmation of its existence or functionality is impossible. There are also no graphs or data showing the Petro network status, such as network activity, confirmation times, transaction throughput, mining hashrate or other basic cryptostatic statistics.
The Venezuelan government's blockbuster explorer currently shows a total of 3,138 blocks, despite the Petro white paper's description of one block per minute.
Despite the lack of pater's cryptocurrency characters, Sunacrip, the regulator responsible for all crypto activities in Venezuela, has sold the digital currency at its headquarters since the end of October. Buyers receive purchase certificates after completing a know-your-customer (KYC) verification involving fingerprints.
Meanwhile, Maduro announced on November 26 during a meeting with his cabinet of ministers that "tourist areas will be created in which services will be paid in international cryptocurrencies, in the cryptocurrency of the oil government and in international currencies," reported El Nacional.
What do you think of Maduro raising the price of petro against the sovereign bolivar? Let us know in the comments section below.
Images courtesy of Shutterstock and the Venezuelan government.
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