Venezuela's President Maduro Issues Order to More Than Double Petro Price
As Bloomberg put it, the price of Venezuela’s Petro, the so-called “state-backed oil-backed cryptocurrency”, was put up from 3,600 sovereign bolivars to 9,000, complying with the recent order made by President Maduro on state television. The order coincided with a 150% increase in the national monthly minimum wage.
As Cryptonews Hub previously reported, “the Petro was initially issued by Maduro to stabilize Venezuela’s embattled financial market and curb runaway inflation.” Each Petro had a value of 3,600.00 Bs.S after Maduro linked the Petro price to the sovereign bolivar in August, 2018.
Economists in Venezuela are holding bearish views on the price hike, seeing that such a move is set to devalue the sovereign bolivar.
According to a report by Bitcoin.com, Leonardo Buniak, an Economist in Venezuela, pointed out that “The Petro could not be legitimately called a cryptocurrency because its value wasn’t set by market forces, but by the President himself.”
Buniak went on, saying, “When the President decrees that a petro is worth 9,000 Bs.S, what he is saying is that the Petro is not a cryptocurrency but a debt title [which] cannot be mined.”
Though the Petro lacks crypto traits and doesn’t currently have a wallet, the Venezuelan government still allows people to buy it by issuing certificates of purchase.