Venezuela is preparing to introduce two official units of account — national cryptocurrency Petro and tied to its rate for the Bolivar, which will replace state Fiat currency undergoing hyperinflation. About this in his televised address, said the country’s President Nicolas Maduro (Nicolas Maduro).
Denominated Bolivar, called “sovereign” and provided oil Petro will be introduced into circulation from August 20 — the date of the official launch of economic reconversion.
“Beginning next Monday in Venezuela will be the second unit, which will be the price, the cost of Petro. […] It will be released into circulation as a mandatory unit for our oil company PDVSA (approx. state oil and gas company),” said the President.
Also, the country will be introduced a new remuneration system and updated the pricing mechanism.
That Venezuelan authorities released a new version of the national Fiat currency to replace the depreciated once the “strong” Bolivar (approx. from 2008 to 2012 in the international classifications used the term Bolivar fuerte — the “strong Bolivar”), became known in the end of last month. According to expectations, Bolivar-denominated banknotes will appear in circulation during the week.
In addition, on Monday, Maduro said that the Central Bank of Venezuela (BCV) will begin to publish official data on the cost of sovereign Bolivar tokens Petro and the cost of the national crypto-currencies at the exchange rate of international currencies. He also ordered heads of ministries responsible for the economic situation, this week to bring to the public the nature of the measures.
“Venezuela will have a real, official indicator […], as a result of speculation in the Venezuelan currency will end,” he promised Maduro.
According to local media, to ensure a smooth transition, the government declared Monday, August 20 a public holiday. The “strong” Bolivar will circulate in the circulation along with sovereign for some time, after which the old currency will be gradually withdrawn from circulation. President Maduro assured Venezuelans, BCV, and public and private banks in the country already have new banknotes and prepare to become active participants in all necessary processes.
The President also explained that the new arrangements for the calculation of compensation and the pricing of goods and services should lead to a significant increase in the operating income category of citizens of Venezuela and restore a system control upper limit in retail prices.
As noted previously, the provided oil Petro could theoretically be used in the country as a payment instrument from April — then it was about transactions involving government agencies. Caracas also announced the creation of four special economic zones where goods and services can be paid for a national cryptocurrency, but, to date, information about the scope of the initiative and the number of such transactions, as well as their size, no.
Note, the details of the monetary reconversion emerge soon after emergence of information that the national constituent Assembly of Venezuela prepares to constitutional reform, including the creation of a Central Bank for cryptocurrencies. It is expected that the Institute will assume responsibility for establishing monetary, monetary and financial policy in the sphere of scriptaction.