Venezuela will create a cryptocurrency to help its struggling economy recover, President Nicolas Maduro said on Sunday. The “petrocurrency” will be backed by oil, gas, gold and diamond reserves, Maduro said, without giving any other details, Reuters reported.
The Opposition did not seem to see much merit in the idea – lawmaker and economist Angel Alvarado said, “It’s Maduro being a clown. This has no credibility.”
The socialist president believes that the digital currency will help Venezuela “advance in issues of monetary sovereignty, to make financial transactions and overcome the financial blockade”.
In August, the United States had imposed sanctions on the Venezuelan government after Maduro won a controversial election that gave his government more power. The financial sanctions further crippled Venezuela’s economy, which has been in recession for four years. The International Monetary Fund predicted a 2,300% inflation in 2018, after a year that likely saw the South American country’s economy shrink by 12%.
The Venezuelan currency bolivar is in a free fall, and the black market rate of the United States dollar reached over 103,000 bolivars on Friday, according to Dolartoday.
Meanwhile, the digital currency Bitcoin touched its all-time high of $10,000 apiece last week. Virtual currencies, though popular and buoyant, have not got any government or legal backing yet.
Limited-time offer: Big stories, small price. Keep independent media alive. Become a Scroll member today!
Our journalism is for everyone. But you can get special privileges by buying an annual Scroll Membership. Sign up today!