Financial News Writing

Venezuela demand using Cryptocurrency on some oil Purchases, U.S. remain strict enforcement on prohibiting transactions in cryptocurrency

According to Bloomberg, the Venezuela President Nicolás Maduro demand to activate Crypto Payment for paying everything . With the requirement of paying port fees in cryptocurrency (₽Petros), merchants of crude oil stopped purchasing. Devaluation upon crypto occurred with worries of banned use of cryptocurrency in the USA.

Petro was launched in February 2018, a cryptocurrency issued by the government of Venezuela.

It has not been sold on crypto currency exchange websites. Locals reported not familiar with the currency.

Retail merchants in Venezuela refuse to accept Crypto Payment that at least 1 million barrels of oil exports were halted after the oil-reached state announced payment should be made in Petros for certain maritimes fees, which was paid in euros before. As hyperinflation caused, merchants who want to liquidate petro holdings face devaluation upon crypto at the Bank of Venezuela. The central bank used the petro rate at the time of purchase, causing devaluation.

Buyers worry the payment may be in violation of sanctions as the U.S. government has banned all use by Americans subject to U.S. jurisdiction of Venezuelan cryptocurrency in 2018, calling it ‘scam’. Alternatively, buyers take gasoline or diesel in exchange for crude oil instead of buying digital currencies.

Icoindex.com, a risk rating websites describe the petro as a "scam." Octavio Páez Malavé, a merchant from Bolivar state, said “It is impossible for merchants to offer biopayment when you do not pay. There is not a single supplier that accepts petros.”

The Western Discount Bank (BOD), a Venezuelen bank, announced the launch of ‘So Crypto’ to facilitate national payment of cryptocurrencies on 14th February. Reintroduction of Petro since 2018 and price control inspectors ‘Price Police '' are hoped to pressure stores in order to accept the country’s state-issued digital currency.

According to The Rio Times, Venezuelen hyperinflation to reach 77million in 2019, externals debt stands at around 1.1billion HKD.