President Maduro has announced that airlines are flying from Caracas, the capital of Venezuela must buy fuel through Petro.
Has Petro failed?
Venezuela has suffered from political instability as well as hyperinflation across the last few years. The economic crisis dealt a great blow to bolivar, the national currency of the country that suffered great loss in its value. At the same time, cryptocurrencies were gaining momentum in the world, so the country decided to create a national cryptocurrency, Petro, that was backed by oil.
The coin was aimed at reducing the pressure from US sanctions as well as providing a safe haven against the bolivar. However, things did not proceed as planned as the crypto failed to attract users that preferred other payment options such as the US dollar and Bitcoin. Since then, Venezuelan President Nicolas has tried various methods to increase its adoption in the region.
This week President Maduro published a decree demanding all airlines flying from Caracus to pay for Venezuela’s fuel via Petro. Maduro also ordered that the coin must be more widely used throughout the country. Meanwhile, another decree states that the asset must be used for state document services such as passports.
Previously Maduro has conducted airdrops for Petro as well as talked about the asset at the state television and radio. However, the adoption of the asset has seen little growth, as even Venezuelans have avoided its use. The biggest reason is that the majority of the public does not know how to use the coin. As for foreigners, the US has banned the asset, so it is unlikely anybody would be using Petro services.
Featured image by pixabay.