News Venezuela Pushing Citizenry to Use State Crypto, El Petro,...

Venezuela Pushing Citizenry to Use State Crypto, El Petro, for Remittances


- Advertisment -

Calling el Petro, “the simplest, easiest, and safest way to send money…(and) the only way to avoid depreciation of income,” Venezuelan politicians are now using their equally controversial national cryptocurrency to make a grab at profits gleaned from the country’s substantial remittance market, Miami New Times reports.

With more than 4 million Venezuelans now forced to live abroad due to chronic decline back home, remittances to Venezuela have become big business.

In 2017, the Venezuelan remittance market was worth $1.5 billion, but revenues are expected to top $4 billion this year, New Times writes.

As hyperinflation and consequences of mismanagement mount, Venezuelans are expected to be withdrawing another $4.5 billion USD from foreign accounts.

If those monies are withdrawn, says Miami New Times, revenues from remittances would eclipse oil revenues in Venezuela, and the Maduro government would like to up its share:

“Maduro and his acolytes have clung to power thanks to a cocktail of rackets, such as illegal gold mining and drug trafficking, combined with spending cuts on food imports and skimming money off the top of aid sent home from Venezuelans abroad. Rent-seeking by the Maduro regime ranges from the elaborate — attempts to tax wire and cryptocurrency transfers — to simple acts such as demanding bribes or charging hefty tariffs on food and medicine packages entering the country.”

Conceived as a way for Venezuela to assert autonomy in global markets, the concept of “El Petro” was first introduced by the Maduro regime in December 2017, but the platform was not launched until February of this year.

The Maduro government has been working to push the citizenry onto the system. Pensioners were recently forced to take part of their pensions in El Petro, despite the fact that the crypto was not yet usable.

Venezuela has also been trying to limit citizen’s use of other cryptocurrencies, New Times reports:

“The Venezuelan government has also attempted to crack down on peer-to-peer cryptocurrency exchanges that don’t trade the Petro or refuse to share user data, but to middling effect. Hundreds of thousands of Venezuelans continue to send money in and out of the country in the form of better-known cryptocurrencies such as Bitcoin and Litecoin, and without government interference. In effect, the recent attempts to popularize the Petro and the state-run remittance platform seem to be little more than Maduro trying to get a bigger cut of remittances.”

Autonomy is the idea, but kleptocracy is the reality, says José Colina, president of Veppex, a Miami-based advocacy organization “politically persecuted Venezuelans in exile”:

“First, the government generates a crisis in Venezuela, and then it looks to profit from the suffering of Venezuelans desperate for money from family abroad…I think it’s shameless.”



Please enter your comment!
Please enter your name here

Latest news

Buy VPS With Bitcoin: The Top 10 List

In this article, we list the Best web hosting providers you can buy VPS with bitcoin. All...

5 of the Best Crypto Jobs Sites

The cryptocurrency and blockchain job market has exploded. With new blockchain start-ups and projects being founded at...

What’s the future of decentralized blockchains?

When Bitcoin was new and not valued at anything or just a few cents anyone could join...

My 5 favorite free crypto tools & sites I use daily

So I often get asked by friends, or people visiting my site about new tips for exciting...
- Advertisement -Venezuela Pushing Citizenry to Use State Crypto, El Petro, for Remittances

Cryptocurrency is The Last Kingdom Where You Can Keep Your Data Private

Data privacy has been a hot topic for quite some time now and particularly after the popularity...

How To Travel With Bitcoin: 9 Travel Companies Accepting Bitcoin

Bitcoin travel is a reality, as several travel companies now accept payments in cryptocurrencies for their services.

Must read

Buy VPS With Bitcoin: The Top 10 List

In this article, we list the Best...

5 of the Best Crypto Jobs Sites

The cryptocurrency and blockchain job market has...
- Advertisement -

You might also likeRELATED
Recommended to you