Venezuela to Peg Pension, Wage Systems to Petro Criptovaluta

Venezuela will begin to use its cryptocurrency "petro" as an official accounting unit, according to the president of the country.

ABC International reported the development on Tuesday, citing a television announcement by President Nicolas Maduro, who first unveiled the December back. As part of the change, the state oil and petroleum company Petróleos de Venezuela (PDVSA) will start using the petro as a unit of mandatory accounting.

The moves come as the Venezuelan government tries to fight the growing economic turbulence by relaxing the currency controls, according to a report by CNBC on 7 August. On August 20, for example, the government will try to reevaluate its currency, the bolivar, and create a "sovereign bolivar".

In turn, the central bank will begin to publish the price of the sovereign bolivar in relation to the petro "and the price of petro according to international currencies," reports ABC. Similar moves will see the country's wage and pension systems linked to the value of petro.

Since its debut, the petro has proven to be very controversial, attracting attacks by opposition politicians in Venezuela and also in the United States and abroad.

In March, the Trump administration banned US citizens from carrying out transactions in the petro as part of a series of new sanctions against the South American country.

Image via Shutterstock


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