Meet the coder asked by the Venezuelan govt to fix hyperinflation with a state-backed cryptocurrency
Venezuelan citizens will be obliged to pay taxes in cryptocurrency
Not all municipalities are ready for innovation
The measure is intended to popularize the national cryptocurrency
The opposition will continue to collect taxes in fiat
Venezuelans will soon have to pay taxes in the country’s oil-backed national cryptocurrency Petro (PTR).
The authorities plan to implement the changes as part of the program to improve taxation proposed by President Nicholas Maduro. Information about this appeared on the government portal.
What is known about the initiative?
Mayors of Venezuela signed an agreement on “tax harmonization”. The document implies the transfer of citizens of the country to pay taxes in cryptocurrency. The changes apply to 305 local municipalities. The campaign, among other things, is designed to expand the area of application of the national cryptocurrency.
It is noteworthy that many mayors signed the agreement despite the fact that in the regions under their control there are no technical tools to implement the initiative. It is known that only 91% of mayors support the President’s project. 30 of 335 incumbent mayors represent the opposition. Opponents of the Maduro regime will continue to collect taxes in Fiat.
Venezuelan Vice President Delcy Rodríguez was appointed responsible for the implementation of the initiative. The specialist will also develop a system for information exchange and payment monitoring. According to her, the innovation will simplify the payment of taxes and make the procedure more efficient..
At the time of this writing, according to the official website of the national cryptocurrency of Venezuela, 1 Petro is equal to $ 58.75.
What’s wrong with Petro?
Recall that the release of Petro took place in 2018. With the help of a digital coin, regulators wanted to bypass the sanctions pressure of the West. Despite active attempts by the authorities to popularize cryptocurrency, local residents preferred other digital assets to it. Against the backdrop of hyperinflation in the country, the citizens of Venezuela were forced to look for alternative tools for calculating. This, among other things, is evidenced by the growth in demand for bitcoin.
Bitcoin purchase statistics for Venezuela’s national currency. Data: LocalBitcoins
In the fall of 2019, information appeared on the network that the Central Bank of the country began registering digital wallets for storing the national cryptocurrency. In early 2020, local authorities announced their readiness to use Petro as a means of payment for oil. The measures taken were not enough to popularize the cryptocurrency. In order to change the situation, Nicolas Maduro decided to create a network of casinos where visitors can place bets in the PTR.
The current level of distribution of Petro can be judged by statistics provided by local regulators. In early June, the Venezuelan authorities announced that in 15% of cases, citizens of the country pay for fuel at gas stations in the national cryptocurrency.
While Venezuela’s authorities are trying to make Petro a popular means of payment, local traders are suffering losses due to the national cryptocurrency.
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