Petro is the name of the new cryptocurrency launched by the Venezuelan government. It recently announced it launched the first “fiat cryptocurrency”.
To me this is a a bit of a non sequitur. It’s either fiat or cryptocurrency but for now at least, not both.
Fiat currency is government based and often manipulated. The Venezuelan government has a long and BAD track record with regards to managing their fiat currency – the Bolivar.
This is why ordinary Venezuelans are moving their money to the non-fiat cryptocurrency options we now have available. This is an attempt to get U.S. dollars into the Venezuelan government coffers!
The Venezuelan government has been financing almost 98% of government expenditures by printing money. This is why the inflation rate in Venezuela is as much as 5,200%.
At that astronomical rate, the value of the bolívar is almost zero. It’s completely inflated away. Everything that’s in bolívares has virtually no value.IMHO
IMHO the petro isn’t a real cryptocurrency project… and it shouldn’t be taken seriously. The government keeps changing its plans. It’s already changed the blockchain platform it says it will be using several times.
If you want my opinion – keep well away from the petro!