Nicolas Maduro, the President of Venezuela since 2013, announced on Sunday during his weekly radio and TV broadcast "Los Domingos con Maduro" the launch of "Petro" backed by oil reserves to shore up a collapsed economy.
Venezuela will create a...cryptocurrency to advance monetary sovereignty, as it will help to overcome the financial blockade and thus move towards new forms of international financing for the economic and social development of the country.
The president of Venezuela
However, opposition leaders are skeptical about the announcement, saying that the digital currency hardly would ever see the light of day in the midst of turmoil.
It’s Maduro being a clown. This has no credibility.
Opposition lawmaker and economist
Currently, the bolivar, the national currency of Venezuela, suffers a 57% depreciation against the dollar in the last month and the rapid inflation of the bolivar has led to a surge in consumer prices that has exacerbated the crisis.
It is worth mentioning that there was a huge demand for bitcoin in Venezuela last week, Its volume amounted to $130 billion.
Weekly LocalBitcoins Volume (Venezuelan Bolivar)
According to Maduro, cryptocurrency could help Venezuela to combat a Washington-backed conspiracy to sabotage his government and end socialism in Latin America.