NUEVA ESPARTA, Venezuela – President Nicolás Maduro announced that the island of Margarita, in Nueva Esparta state, will be the first special economic zone for the Venezuelan cryptocurrency known as the Petro.
“I have just signed a decree declaring the entire island of Margarita the special economic zone for the use of Petro as the currency of purchase and exchange … the first Petro zone of the country,” said the head of state during a campaigning stop in Nueva Esparta, transmitted by the Venezolana de Televisión state channel.
In March, Maduro announced the creation of four economic zones to commercialize the goods and services in Petro and other crypto-coins, as well as the opening of exchange offices.
The other areas are: the Los Roques archipelago (north), the Paraguaná peninsula in the state of Falcón (north) and the border axis between Ureña and San Antonio de Táchira (west).
The Petro was pushed by the president in order to avoid the financial blockade imposed by the US and other states allied to the imperialist power and is guaranteed by the price of a barrel of Venezuelan crude oil.
Cryptocurrency is a virtual currency for exchanging goods and services through an electronic system and without intermediaries. Unlike electronic money, it incorporates encryption principles that allow for safe, anonymous, unmanaged transactions by any state, bank, or financial institution, as defined by the publication CryptoCurrency Profits.
On April 3, Venezuelan Foreign Trade Minister Jose Vielma Mora stated that Venezuela will use its own cryptomoeda as part of the payment for automotive components imported from Russia. Financial analyst Dmitry Golubovsky has revealed the pros and cons of this decision.
Golubovsky underlined that the US was against the launch of the petro and threatened with sanctions against the entities that planned to use it. Large companies or suppliers will not make payments with petro: it is not a net asset and it is still unclear what can be done with this crypto in the future, and how to classify it in accounting.