Petro Coin to Be Used As an Accounting Unit
Venezuelan cryptocurrency Petro is set to be used as an accounting unit, reported President Nicolás Maduro.
According to an announcement made by Venezuelan President Nicolas Maduro and cited by ABC International, the country’s native digital asset the Petro will be recognized as an accounting unit and the first company to use it will be Petróleos de Venezuela (PDVSA).
“As of next Monday, Venezuela will have a second accounting unit based on the price, the value of the petro. It will be a second accounting unit of the Republic and will begin operations as a mandatory accounting unit of our PDVSA oil industry,” Maduro claimed in a televised interview.
The move comes as a response to the Venezuelan government’s effort to find solutions against economic inflation and reduce national currency manipulation, as reported on 7 August by CNBC. Another measure is the launch of a new native currency – the Bolivian sovereign, set to be tied to the Petro.
As a result, the central bank will issue the price of the Bolivarian Sovereign in line with the Petro “and the price of the petro according to international currencies,” ABC reported. In addition, the government intends to introduce a pension and wage system merged to the Petro’s value.
Venezuela to change the 1999 Constitution
The news came shortly after the Venezuelan National Constituent Assembly announced it plans to modify the 1999 Constitution, according to which one of the projects is the establishment of a central bank of cryptocurrencies, as previously reported by Coindoo.
“The National Constituent Assembly of Venezuela…is preparing a reform to the Constitution that would include a central bank for crypto-assets and a superior court to the Supreme Court of Justice.”
The country’s digital asset the Petro was launched in February 2018 as a government-backed currency. Since then, the economic environment has been discussing on the contradictory influence of the coin.
“Cryptocurrency experts have said the petro suffers from a lack of credibility because of a lack of confidence in Maduro’s government and the mismanagement of the country’s existing national currency,” Reuters described.