Venezuela to Replace Bolivar Fuerte with the Petro & New Bolivar

Venezuela to Replace Bolivar Fuerte with the Petro & New Bolivar

It has been half a year since Venezuela began running its first state-owned cybercoin, Petro. Within this time span, the country ordered state-services to accept any cyber-assets, while various reports hinted there could have been Russia’s influence in the launch of the petro-coin.

After multiple coins’ ups-and-downs, Venezuela’s leader Nicolás Maduro notified that petro will be used as a unit of account in the entire country. As it is known, the petro is backed up by Venezuela’s oil resources, and there is a lot of controversy about its emission.

The Petro Will Become More Than Official

As per ABC International’s report, the petro may be used on par with Venezuela’s fiat bolivar. Newly, in a TV-reported speech, Maduro said Venezuela-held oil entity PDVSA would use the state's cyber-coin as a unit of account.

Two State Currencies at a Time

A profound monetary reconversion may occur in Venezuela.

Petro will start functioning on an equal basis with the sovereign bolivar as of August 20. It, by the way, will be indexed to the cyber-coin. Currently, Venezuelans are using the bolivar fuerte (meaning ‘strong’). The sovereign bolivar will ‘subtract’ five zeros from the fuerte one and together with petro, it will interchange the latter.

Furthermore, as per Maduro, the gov’t will soon present novel:

  • Remuneration system
  • Commodities and services rating system (but only of those, related to the petro)

The country’s head also added that in his view the realization of new systems would perfect workers’ earnings.

Maduro said the country’s Central Bank would soon begin to publish the authorized digits regarding sovereign bolivar’s price after it is matched with the petro and other nations' fiat. As of the leader’s words, the central bank and other financial institutions owned by individuals have already seen the novel banknotes.