Venezuela announces 2 currency units—Petro and Sovereign Bolivar

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Venezuelan President Nicolas Maduro announced on Tuesday that the state-backed Petro cryptocurrency will be used as a unit of account in the country. In addition, the government will also introduce a new salary system and a pricing system for goods and services that are pegged on the Petro, ABC International reported.

Effective on August 20, Venezuela will have two official units of account: the state-backed Petro token and the new Petro-pegged sovereign bolivar, Maduro announced during a televised address. According to the president, the country’s state oil company will also start using the Petro as a unit of account.

Maduro said the new Petro-based salary and pricing system is aimed at improving the income salary of workers in the country, adding that he believes that the new pricing system will help create affordable products for the people in Venezuela.

To help the public get a better understanding of the new changes, Maduro ordered the ministers in charge of the country’s economy to break this concept down in easy to understand information snippets. This should be done before thin the course of this week.

Banco Central de Venezuela (BCV), the country’s central bank, will begin to publish official figures for the value of the sovereign Bolivar in Petro. BCV is also expected to publish the value of the national cryptocurrency in international currencies.

Maduro’s government has declared August 20 to be a non-working day. This will facilitate a smooth transition and help the Venezuelan residents start adapting to the new system. According to reports, both the new and old currency will circulate together for some time before the old currency is phased out. Nicola Maduro also stated that financial institution like the BCV and private banks already have the new banknotes and are making the necessary changes to implement the new changes.

Since the beginning of 2018, Maduro has been making various changes to Venezuela’s economy. First came the introduction of a state-backed crypto, followed the sovereign bolivar, the new national currency. According to reports, the Venezuelan government is working to create a stable financial environment that will liberate the country from financial shackles. Recently, the Constituent Assembly is reportedly working on a proposal that will paved the way for a central bank for their cryptocurrency to help facilitate the new changes.