Venezuela has been one of the early adopters of cryptocurrencies as a country, mostly because of its ailing economy which has caused destitute to Venezuelans many of whom have been quitting the country in droves.
Venezuela has flirted with cryptocurrency before. Previously, the country announced plans to open the world’s first crypto casino. Now, according to the vice president of Venezuela, Delcy Rodríguez, the country is about to step up the use of blockchain and crypto in order to open up its economy against scathing sanctions that have sent inflation up beyond the purchasing power of 90% of the country’s population.
Now, Petro will have to step in as the way to conduct payments. However, the government acknowledges the lack of technological preparation in citizens and local tax offices and it has explained that fiat currency payments will still be accepted while everyone can get on board.
In stating the reasons behind the move, vice president Delcy Rodríguez had this to say: “It is the simplification of procedures, making the State's administrative activity at the service of the people more efficient, of the economic sectors that stimulate economic activity in the productive and commercial areas, framed in this week of flexibility that began on Monday.”
It’s an ambitious bit for the government to try and offset the economic doldrums the country is currently in. Whether it would be successful depends not only on the successful implementation of crypto payments.
Venezuela needs an industry and it needs to pull its people out of crippling, state-induced poverty. Until that’s met, Petro payments are definitely an ambitious undertaking, but not something that is going to save Venezuela from the catastrophe orchestrated by villainous statesmen and women.