This past year has seen a plethora of national cryptocurrencies popping up to save economies from inevitable sanctions and to create a more stable currency. One country who benefits the most from a government crypto is Venezuela with their creation of petro digital currency based on the price of their oil.
President Nicolas Maduro has pushed the petro as the international exchange currency on countries like India. The next step is to replace the bolivar (the current fiat) domestically with the petro by providing a national saving account so citizens can begin accumulating the state cryptocurrency.
The Supreme Tribunal of Justice – the highest courts of law in Venezuela – announced two momentous decisions last week that has led the government to finally release their petro savings account plan.
- A worker’s compensation case involving the National Institute of Agricultural Research was issued in the form of petros. María Elena Matos, the compensated worker, received 266 petros for her loses, which is the equivalent of 967,600 bolivars.
- The Constituent Degree that protects cryptoassets, specifically the petro was official approved. The supreme court “ordered the implementation of the Constituent Decree on Cryptoassets and the Petro Sovereign Cryptocurrency, in order to guarantee an effective judicial protection and protect the value of the amounts that are set as compensation for moral damage.”
Now that the petro can be used for judicial cases and be protected in court, the government plans to allow its citizens to begin purchasing state crypto through an online saving account.
Venezuelans who hold a national ID card can access a digital portal where over 18 million residents will be able to start acquiring petro while earning interest through a certificate.
President Maduro has released 4 million petro (about 240 million dollars) to initiate the first phrase of the saving program. Accounts use quarterly amortizations that can be paid out at 90, 180, or up to 270 days with a .1 percent penalty for early withdraw.
The government’s web site states that accounts can be accessed Monday through Saturday from 6:00 a.m. to 10:59 p.m. with a minimum purchase of .01 petro to get started.
Giving Venezuelans the opportunity to purchase, save, and profit from the petro could certainly make it a worthy contender to oust the modern bolivar. If successful, Venezuela will the first country to save its economy by replacing its fiat with a state-run cryptocurrency.