venezuela creating digital currency
Last Updated : GMT 05:17:37
Emiratesvoice, emirates voice
Emiratesvoice, emirates voice
Last Updated : GMT 05:17:37
Emiratesvoice, emirates voice

Amid financing crisis

Venezuela creating digital currency

Emiratesvoice, emirates voice

Emiratesvoice, emirates voice Venezuela creating digital currency

Over the past year, the Venezuelan bolivar
Caracas - AFP

Venezuela is creating a digital currency to combat a financial blockade by the United States, President Nicolas Maduro announced Sunday.

The Petro will be backed by Venezuela's oil and gas reserves and its gold and diamond holdings, the president said in his weekly television program.

"This is going to allow us to move toward new forms of international financing for the country's economic and social development," the president said.

The government also announced the creation of a "blockchain observatory" -- a software platform for buying and selling virtual currency.

Although the president did not offer many details, analysts such as Henkel Garcia see the possibility of success as limited.

"You can build it, but trust, acceptance and use is what will determine the cryptocurrency's success. For me, it will be quite limited. The bolivar is is also backed by reserves and has no strength," Garcia, director of consultancy Econometrica.

"Confidence in a country is going to depend on the levels of production and the wealth it generates. For example, people trust the dollar for the levels of wealth associated with it," he said.

The announcement comes as Venezuela faces acute financing problems after creditors and ratings agencies declared the government and state-run oil firm PDVSA to be in partial default for missing interest and principle payments on bonds.

Maduro blames sanctions imposed by the United States in August barring American citizens and companies from buying any new Venezuelan government or PDVSA bonds.

Venezuela is mired in a deep economic crisis triggered mainly by a fall in crude oil prices and a drop in oil production. Petroleum is its main source of hard currency.

Over the past year, the Venezuelan bolivar has plummeted 95.5 percent against the dollar on the black market.

Virtual currency is not new for Venezuela -- considered by specialists a haven for bitcoin production with minimal costs.

It is estimated that tens of thousands of people mine bitcoin to protect themselves from inflation -- set to surpass 2,300 percent in 2018 -- by exchanging earnings for dollars or more bitcoin.

In Venezuela, a the law does not expressly prohibit mining bitcoin -- experts say officials are involved -- but the authorities persecute those who do it for power theft

GMT 07:58 2017 Saturday ,25 November

Venezuela PDVSA makes payments

GMT 10:34 2016 Monday ,19 December

New bills flown into Venezuela

GMT 11:55 2016 Saturday ,10 September

US-wary Venezuela opens up

GMT 12:26 2016 Saturday ,07 May

Easier said than done in Venezuela

GMT 08:50 2016 Friday ,19 February

Heat rises on Venezuela leader
Emiratesvoice, emirates voice
Emiratesvoice, emirates voice

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

venezuela creating digital currency venezuela creating digital currency

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

venezuela creating digital currency venezuela creating digital currency

 



GMT 05:06 2024 Tuesday ,06 February

New hunt for flight MH370 gets under way

GMT 06:15 2018 Tuesday ,23 January

Volkswagen clinches record sales

GMT 22:30 2017 Thursday ,01 June

Actress Heidy Karam deals with her work

GMT 12:19 2012 Wednesday ,22 August

School violence and 'collective sanctions'

GMT 19:36 2016 Friday ,26 August

Univision to hold unity concert ahead of election

GMT 13:40 2017 Friday ,20 January

PSG better option than China

GMT 08:36 2017 Thursday ,09 November

Kobe Steel,Nissan scandals tarnish image

GMT 12:41 2017 Wednesday ,22 February

Saudi Crown Prince Meets US Senator John McCain

GMT 08:48 2011 Wednesday ,14 December

Botanical suplements linked to serious illness

GMT 20:24 2011 Saturday ,26 February

Iran rejects nuclear watchdog\'s concerns

GMT 13:27 2013 Wednesday ,08 May

300,000 day-old babies die each year in India

GMT 14:21 2017 Monday ,14 August

Aqua therapies available in UAE

GMT 09:46 2011 Monday ,20 June

DisplaySearch downgrades LCD TV market outlook

GMT 04:33 2016 Sunday ,08 May

NBA playoff results

GMT 09:29 2017 Tuesday ,27 June

Federal National Council visits UAE soldiers

GMT 16:40 2011 Friday ,25 February

Egypt arrests former information minister

GMT 11:52 2017 Sunday ,12 March

NASA reveals strange shape of Saturn's moon Pan

GMT 16:36 2017 Tuesday ,02 May

Rain for parts of Oman

GMT 12:30 2017 Monday ,04 December

Mining giant Rio Tinto appoints new chairman

GMT 23:08 2017 Wednesday ,28 June

French officials realize Qatari threat
Emiratesvoice, emirates voice
 
 Emirates Voice Facebook,emirates voice facebook  Emirates Voice Twitter,emirates voice twitter Emirates Voice Rss,emirates voice rss  Emirates Voice Youtube,emirates voice youtube  Emirates Voice Youtube,emirates voice youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

emiratesvoieen emiratesvoiceen emiratesvoiceen emiratesvoiceen
emiratesvoice emiratesvoice emiratesvoice
emiratesvoice
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
emiratesvoice, Emiratesvoice, Emiratesvoice