Venezuela's 'Petro' Cryptocurrency Announced

    Jan 23, 2018 @ 03:44 PM / by Alex Davis

    Caracas, Venezuela as seen during a recent AIRINC on-site survey. Photo taken by cost of living surveyor Matt McClintic.

    Venezuela and the VEF Exchange

    The DICOM auctions introduced on May 31 were suspended after the August 31 auction, which was voided. As a result of US sanctions and the country’s continuing economic crisis, Venezuela was unable to pay the USD 22 million the auction would have awarded. The suspension of the DICOM auctions has essentially frozen the VEF exchange rate, although the value continues to depreciate on the black market. In recent months the black market value of the Bolivar has rapidly depreciated and is currently over 240,000 to the dollar.

    Depreciation of the Bolivar and the Increasing Popularity of Cryptocurrencies

    Due to the depreciation of the Bolivar and the difficulty of obtaining hard currency, the use of cryptocurrencies such as Bitcoin is becoming increasingly popular in Venezuela. The recent surge in the value of bitcoin has also made converting Bolivares more appealing to many Venezuelans. Cryptocurrency is also appealing to the government of Venezuela as a way to work around economic sanctions. President Maduro recently announced the creation of the Petro, Venezuela’s own cryptocurrency, backed by natural resources such as oil and gold. As recently as January 9th, the Venezuelan parliament voted against the issuance of the Petro. Whether the Petro finds legitimacy and what impact it will have remains to be seen. 

    AIRINC's Data Points: Your Global Mobility News

    Want to learn more?  The above excerpt is taken from Data Points, AIRINC's quarterly newsletter. Data Points brings you the latest updates from our Housing, Goods & Services, and Tax departments based on our expert international surveys, which are conducted by our global data collection team on-location.

    This quarter's cost-of-living surveys were conducted primarily in Europe, Asia and mainland Southeast Asia. Click below to access our quarterly release now:

    Access Now!

    Topics: Currency Volatility, foreign currencies, Data Points, Venezuela, Data and Infographics, cryptocurrency

    Alex Davis

    Written by Alex Davis