Maduro says Venezuela to get $1 bn injection from 'bitcoin' sale

April 27, 2018
With rampant inflation more than decimating the bolivar, Venezuelan authorities are banking on the petro becoming a digital means of pulling them out of crisis

Venezuela's government, which is facing a worsening liquidity crisis, is to release $1 billion into the economy obtained through the sale of the petro, its new cryptocurrency, said President Nicolas Maduro.

Speaking late on Thursday, he said the aim was to boost the country's international reserves and its foreign currency reserves and to halt the rise of the black market dollar.

Despite having the world's largest proven crude oil deposits, Venezuela's foreign reserves have dwindled to $9.7 billion while it must pay off some $8 billion this year.

Maduro said that sales of the petro—Venezuela's new cyber currency which was launched in February—had brought $3.3 billion into the state coffers, of which $1.7 billion would be set aside for importing "food, medicine and industrial goods."

Of the remaining $1.6 billion, $1 billion would be transferred to Venezuela's Central Bank on Friday "for auctions and to continue fighting the devil," he said referring to the so-called "black dollar."

Struggling to overcome chronic liquidity shortages and burdened by US sanctions, Venezuela launched the first government-backed cryptocurrency in the hope that it would lead the crisis-torn nation out of the financial woods.

Venezuela's economic woes have much to do with the slump in recent years in the price of oil, which accounts for some 96 percent of the country's revenue.

US economic sanctions have also taken a heavy toll.

Venezuela's government has accused the opposition, the United States and Colombia of waging an "economic war" on the country aimed at overthrowing Maduro.

It has also blamed the country's cash crisis on mafias accumulating cash in order to speculate.

Last week, the IMF said Venezuela's economic collapse ranked as one of the worst in modern history, with massive hyperinflation likely to see prices soaring 13,000 percent this year.

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aksdad
2.3 / 5 (3) Apr 27, 2018
It's the socialism, stupid. The cryptocurrency cash won't help anything.

Like every other socialist regime in history, blame your economic failures on everyone but yourself, starting with:

a. evil capitalists (in this case, the "mafia")
b. the United States (those evil Americans who want people to be free)
c. the price of a major commodity (this time it's oil)

Strangely, all the other oil exporting nations in the world seem to be still making a ton of money even when oil prices go down. The Venezuelan government must just be uniquely unlucky.

For those of you who still think socialism is awesome, this is ultimately what happens. Every single time. Unless you start implementing market reforms (read: let people own stuff and make a profit; in other words, try a little freedom).

It's unfortunate that so many gullible people who are envious of rich people (does "economic inequality" sound familiar?) can be persuaded to implement this kind of government.
Edenlegaia
not rated yet Apr 29, 2018
For those of you who still think socialism is awesome, this is ultimately what happens. Every single time. Unless you start implementing market reforms (read: let people own stuff and make a profit; in other words, try a little freedom).

It's unfortunate that so many gullible people who are envious of rich people (does "economic inequality" sound familiar?) can be persuaded to implement this kind of government.


Kinda true. France was ruled three times by socialist presidents. By then, either you could protect your children all day and night and everything was fine, or you couldn't and better sell them directly to at least profit from them getting eaten by hungry, poor people.

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