Home
News
- 1 A media report states that the government of Venezuela has terminated its national cryptocurrency Petro.
- 2 Petro was backed by oil reserves of the nation and was initially priced for $60.
- 3 The inflation rate of Venezuela reached 234% in 2022, which is one of the highest inflation rates in the world.
A media report of a regional outlet of Venezuela said that the government of the region has terminated its national cryptocurrency Petro (PTR). the decree will be effective from January 15, 2024.
The national cryptocurrency of Venezuela was solely backed by the oil reserves of the nation and their initial price was $60.
Though the concept of a national cryptocurrency or a national digital currency was fully backed by the government, questions were raised regarding its authenticity. Moreover, it failed to resonate with users of the nation and other financial bodies.
Limitations in terms of everyday usage largely slowed wider adoption. To boost the adoption, the government employed multiple tactics and even requested their citizens to use it as a mode to pay taxes and traffic bills.
Following the termination of usage, the mined Petro were converted into the native traditional currency of the nation, which is struggling at its verge.
Venezuela is among such nation’s that are struggling due to high inflation, peoples’ low per capita income and poverty in the region is well recognized by many leading media outlets.
The termination of Petro will probably affect the crypto industry of Venezuela and it might also lead to the shutting down of cryptocurrency exchanges and other mining activities.
As per crypto market observers, currently, the market has shown a reversal and Bitcoin once again slipped to the $42k mark. Yesterday, it was trading near $48k in the wake of the news of ETF approval by the SEC.
As per Reuters, Venezuela’s 2023 inflation rate stopped at 189.8%, marking a slight easing of the still sky-rate of rising consumer prices in the South American nation’s battered economies.
The highest inflation rate of the country reached around 189% in 2023, which is one of the highest inflation rates in the world.
Crypto Market Updates
The entire crypto market is evolving constantly since the past few months dozens of companies allocated millions for the betterment of their ecosystems.
Hedera Council, the governing body of Hedera public blockchain has approved the allocation of approximately 5 Billion Hedera Hasgraph’s the native crypto token/coin, for the future development and advancement and betterment of the network.
In the past 24 hours, the crypto market lost 5.09% of its market capitalization and when writing, it was $1.68 Trillion.
Similarly, Bitcoin declined by around 7.25% intraday. At the same time, its market capitalization showed a gap of 7.23% (-$3.39 Billion) compared to a day earlier. On January 13, 2024, the reported market cap of BTC was $835.671 Billion.
Disclaimer
The views and opinions stated by the author or any people named in this article are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
