Starting August 20th Venezuela is set to have two official currencies — the bolivar and the petro, a cryptocurrency developed by the government of Venezuela, to be valued equally and interchangeable.
Thus, Petro will play a bolivar’s stablecoin role, similar to what Tether (USDT) aims to become for the US dollar. The president also said that the valuations of the two currency will be determined by the Central Bank; a new salary system implies paying wages in Petro.
“As of next Monday, Venezuela will have a second accounting unit based on […] the value of the Petro. It will be a second accounting unit of the Republic and will begin operations as a mandatory accounting unit of our PDVSA oil industry. This system completely end the speculation of the Venezuelan currency,” Maduro said in a speech televised on TeleSUR.
Launched in February 2018,the petro, or petromoneda, is a cryptocurrency developed by the government of Venezuela. Announced in December 2017, it is claimed to be backed by the country’s oil and mineral reserves, and it is intended to supplement Venezuela’s plummeting bolívar fuerte currency, purportedly as a means of circumventing U.S. sanctions and accessing international financing. As Venezuela has the largest oil reserves in the world, the petro is backed by a barrel each — as of January 2014, the country has a total of 297 billion barrels.