Venezuela Government Converts the Retired Pensions in Petro-Crypto

Venezuela Government Converts the Retired Pensions in Petro-Crypto
Venezuela Government Converts the Retired Pensions in Petro-Crypto

Venezuela government has announced that it converts the retired pensions monthly from Bolivar, the currency of the country, to petro-crypto. Petro-currency has been created and published by the government of Venezuela backed by petroleum and gas resources of this country to counteract its runaway inflation in recent years. According to Caracas Chronicles news-analysis websites, each month, Venezuelan government deposits the retired pensions into their accounts in Bolivar and then converts them into Petro. This conversion is done regardless of permission and request of the account owner. Nicolás Maduro, the Venezuelan president has obliged the banks of this country to adapt their financial system to Petro and introduced it an official replacement to Bolivar. Moreover, Venezuela government has offered Petro as a currency in OPEC and Promised the Indian government, one of the most important petroleum customers of this country, a 30% discount in case of paying through Petro.
Currently, the manner of using retirement pensions paid in Petro is not clear. From the one hand, converting it into Bolivar has some difficulties in a way that according to the published reports, the retired spend their whole day at the banks to receive it in Bolivar. Maduro has recently rendered eight steps of converting Petro into Bolivar in a twitter post. Accessing this payment is possible through www.patria.org.ve. There will be no access to the paid pensions without registration in this site. It has made it one of Venezuela’s mostly visited sites. The next project of the government is to provide a mechanism to directly use petro’s official website in order not to have the need to convert.
Petro is Venezuela government’s solution to cope with its paralyzing inflation. Hence, the government is continuously trying to encourage people to use this crypto. Venezuelan people have eagerly interested in cryptos to sustain their capitals in this economic confusion in a way that Bitcoin exchange has reached its highest level in Venezuela. In spite of government pressures to use petro, the experts’ investigations show that Petro is a copy version of Dash cryptocurrency. According to critics, Venezuela government’s control on Petro is in contrast to the purpose of crypto, and it challenges Petro’s success as a crypto.  “What is the effect of Venezuelan government decision on its economy in the long-run?” and “how will the government problems in converting the currency be solved?” needs more research.