Venezuela’s Petro Cryptocurrency Recognized As Legal Tender
In their attempt to counteract the effect of their failing economy the Venezuelan government launched Petro, a national cryptocurrency, becoming the first Latin American crypto nation, and after several delays, its government finally announced the launch of the Petro as a cryptocurrency created to associated with the issuance of traditional fiat money.
While Petro could have pinned the hopes many towards a better future, the stable coin hasn’t been received well. Among the opposers, the forerunner is the U.S. government, immediately after Petro’s announcement they launched a vigorous campaign against it, as the national cryptocurrency could possibly bypass the sanctions unilaterally imposed by this government against the Venezuelan people.
Initially touted to release in late March 2018, surprisingly even after the announcements of President Maduro, it wasn’t launched. The token wasn’t available for buying or selling:
— Hugbel Roa (@hugbelpsuv) March 21, 2018
Translation of the tweet
#21Mar Let’s go Venezuela, and the entire World. The Petro’s ICO has begun
Even after several failed attempts, the government announced that on October 1 the Petro ” would be effective as convertible currency in the country.”
¡Lo dijo! ??#EnVideo? | Pdte. @NicolasMaduro: El primero de octubre, el Petro va a la calle a funcionar como moneda de compra y divisa convertible. Moneda digital de Venezuela para el mundo. Más aquí ?? pic.twitter.com/3ICc4YoX0t
— MIPPCI (@Mippcivzla) October 1, 2018
Translation of the tweet
He said It! #Live / President Nicolas Maduro: Oct 1st, Petro will go live to be used as a convertible currency. A digital currency from Venezuela to the World…
The Venezuelan crypto community was in for a sweet shock as the Petro wasn’t available from the aforementioned date as well, along with that some ambitious changes were made to the Whitepaper on the day of its planned launch. After much trepidation, at the end of October, the controversial cryptocurrency received a final release date on Monday, November 5. The Petros would be available for purchase with cryptocurrencies via official exchanges and cash through direct purchases from the National Treasury.
El Petro podrá adquirirse en bolívares soberanos a partir del 5 de noviembre. Más información ?https://t.co/tuIGsTPRzr … … …
— Banco Central de Venezuela (@BCV_ORG_VE) October 29, 2018
Notably, the country’s highest body with judiciary competencies, the Supreme Court of Justice dictated the payment of monetary compensation to a Venezuelan worker. The value was determined in 266 Petros. This issuance implies that the Supreme Court has accepted Petro as legal tender, as analyzed by the community of Venezuelan lawyers.
The non-believers of cryptocurrencies have opposed this decision as they still want to institute Bolivar as the legal currency of the country. This ruling was soon followed by another order by the Supreme Court of Justice to implement the “Constituent Decree on Cryptoactives and the Sovereign Cryptocurrency Petro” issued by the country’s highest legislative body, the National Constituent Assembly.
1/3 El @tsj_venezuela ordenó la implementación del Decreto Constituyente sobre Criptoactivos y la Criptomoneda Soberana Petro con el fin de garantizar una tutela judicial efectiva y proteger el valor de los montos que sean fijados como indemnización por daño moral. pic.twitter.com/mAMj1TfA6A
— TSJ Venezuela (@TSJ_Venezuela) November 2, 2018
Translation of the tweet
Venezuelan Supreme Court of Justice ordered the execution of the Constituent Decree on Cryptoactives and the Sovereign Cryptocurrency Petro with the intention of guaranteeing the effective remedy and protect the value of the amounts that are set as moral value
With this second decree, the executive, legislative and judicial branches of Venezuela officially recognize Petro as legal tender. Being accepted as a legal tender is quite important for Petro as this not just protects, but promotes the use of any other cryptocurrency as a legal means of payment:
Promotion and Guarantee of Use
The Venezuelan State shall promote and guarantee the use of cryptocurrencies as a means of payment in public institutions, [and] private companies … inside and outside the national territory.
The problem to proclaim Petros still persists, and apparently, the backing developers are still working on the legal and technological infrastructure necessary to guarantee the success of this strategic decision.
The idea of expressing one’s views and reviews through words is beyond intriguing. What started as a creative let out has now become a passion and a profession for Arshmeet K Hora. In her own words ” with every word, every article that I write, my passion towards this medium has grown stronger.” Arshmeet covers latest crypto news and updates as well as what happening new revolving around Blockchain Technology.