Maduro’s starts Gold & Oil based Cryptocurrency to save Venezuela’s economy

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Venezuelan President Nicolás Maduro has taken action amid the country’s economic deterioration, which has led Caracas to adopt a national cryptocurrency based in oil reserves.

Residents of the Venezuelan country will now be willing to invest in the cryptocurrency known as the petro, as well as gold, Maduro said on Monday.

The president introduced two types of gold bars that would be available for purchase. The price of a bar of 1.5 grams will reach 3,700 bolivars, while a bar of 2.5 grams will cost 6.3 thousand bolivars.

“This week we will activate a set of elements within the recovery Plan; A Plan of saving in gold, ingots that will be of free access in BS. S so that the Venezuelans acquire them: they will be of 1.5 GRS in 3,780 BS. S and 2.5 GRS by 6,300 BS. S,” said the Venezuelan leader.

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It should be noted that recently a program of economic recovery, growth and prosperity was implemented in Venezuela, which included a monetary conversion, a new fiscal policy, a new currency exchange system, among other measures.

In February, Caracas launched its own cryptocurrency, the petro, which is based in the country’s oil reserves.

The economic situation of the Latin American country deteriorated due to the deficit of goods, the acceleration of inflation, the fall of government revenues, driven by falling oil and gas prices, as well as mass protests which was funded by the West. All this came in conjunction with US-led sanctions against the sovereign state.

In March, US President Donald Trump signed an executive order to prevent anyone in the United States from using Venezuela’s new digital currency. The executive order says Venezuelan President Nicolas Maduro has issued the digital currency in an attempt to circumvent US sanctions. In addition, the US Treasury Department has included four Venezuelan officials and former officials on the sanctions list.

The difficult economic situation in Venezuela led to accelerated inflation and the Venezuelan Bolivar exchange rate collapsed in the black market.

In July, the annual inflation rate reached 82,766 percent. The International Monetary Fund (IMF) expects inflation in Venezuela to reach 1 million per cent this year.

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