Venezuela started paying pension in cryptocurrency

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Venezuela started paying pension in cryptocurrency

Venezuelan government starts paying pensions in controversial national cryptocurrency Petro without consent of the elderly.

Typically, retirees received monthly bolivars in their bank account and could receive cash at the nearest branch. However, the last charges were sent to citizens’ web wallets for the first time and were automatically converted by the government into Petro after they were sent. This means that the authorities first credited the bolivars, then removed them all and replaced them with cryptocurrency. This decision was initiated from above without any agreement with citizens.

Local English language blog «Chronicles of Caracas» notes that recently the Petro quotation in relation to the bolivar is unstable and in just a few weeks has grown from 9 to 15 thousand per unit. This kind of dynamic along with the appeal the authorities to accumulate cryptoassets in order to fight the crisis, endangering the material well-being of the population.

Venezuela started paying pension in cryptocurrency

In addition to transferring pensions to Petro, citizens are required to pay the receipt passports using cryptocurrency only. Earlier, Venezuelan President Nicolas Maduro said that the salaries of citizens will also be transferred to virtual currency.

According to EXANTE expert Viktor Argonov, investigation showed that deposits and oil to which “tied” Petro does not exist, so the government is playing aggressively, artificially creating at least some turnover and an inflow of liquidity for its project. In general, he is pessimistic about the course chosen by the country’s leadership:

"In a country where you can buy 100 liters of gasoline for $ 1, the existence of such schemes with pensions and the national cryptocurrency is understandable, but the Venezuelans are no better off. We can only hope that it will not be possible to go against logic forever. Ultimately, El Petro is likely to fade into oblivion along with the current political course."

While Venezuela is completely switching to cryptocurrency, the Chinese authorities are increasing their negative towards everything connected with it..

text: Ivan Malichenko, photo: s4.reutersmedia, elespectador