Venezuela’s economic crises forces it to use cryptocurrency for exchange with Brazil

Venezuela is in deep economic crises and its fiat has gone for a toss. This has forced the government to officially launch the first state-backed “cryptocurrency” in the form of the Petro coin. And now, according to reports, Venezuela is using its state-backed cryptocurrency as an economic exchange with Brazil.

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Petro to be used for buying good and services from Brazil

As the official launch of Petro coin is behind us, Venezuela is now promoting economic exchange with the northern zone of Brazil through transactions with the cryptocurrency Petro, announced the governor of the state of Bolívar, Justo Noguera

The digital asset will be used for the purchase of supplies, medicines, and food that are regularly carried out by companies and owners of the Venezuelan jurisdiction to companies located in the Brazilian border state of Roraima, the official said

In this way, the government of Bolívar assumes the Petro as a trade tool with northern Brazil, which validates the success of the first digital currency of Venezuelan origin that this week began its digital sale and at the box office.

Noguera also announced that the initiative facilitates the purchase of spare parts and supplies for the basic companies producing iron, steel, and aluminum located in Ciudad Guayana, located in the state itself. To quote him from a local news mouthpiece

“This currency will guarantee the operations of our companies, against the economic blockade that the United States intends to implement against Venezuela”. His this statement was in reference to the substitution of the dollar for the purchase of machinery, spare parts and raw materials in those sectors.

Starting this week, Venezuela, began the sale of the new form of payment in two forms, in person with convertible currency at the box office and via the web with other digital assets such as Bitcoin, Ethereum, NEM, among others.

#Enterate || El Petro podrá ser adquirido por personas jurídicas y naturales desde su portal web https://t.co/0ldQe5CTHL #PetroNuevaEraEconómica pic.twitter.com/x2gyoncOVd

— Vicepresidencia de Economía (@ViceEconomia) October 29, 2018

The Petro is the first virtual currency in the world backed by energy and mining reserves of a nation, which makes it a solid, reliable and safe investment, said the president of the country, Nicolás Maduro.

Although Venezuela is forced to use cryptocurrency due to its economic condition, it is laying a roadmap of how the world would behave when cryptocurrencies take over fiat across the globe. Let’s see how swiftly it happens

Is Petro coin answer to Venezuela’s economic problems? Do let us know your views on the same?