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Inflation continues to devalue the Venezuelan bolivar (VEB), even as the authoritarian government of the country seeks to divert the attention of the troubled economy by peddling its cryptocurrency "Petro".
According to Reuters, prices in Venezuela increased by 454% in the first quarter of 2018 and increased by 8,900% in the last 12 months.
These figures come from the opposition – controlled National Assembly and are largely in line with estimates by independent economists. Meanwhile, the Venezuelan central bank has not released official data on inflation for more than two years.
This hyperinflation left Venezuela on the brink of economic collapse and the locals are fleeing the country at an estimated rate of 5,000 migrants per day. By the end of the year, more than five percent of the country's population – 1.8 million people – will have left Venezuela.
But rather than tackling these problems, the government of what was once the richest country in Latin America continues to sing the praises of Petro, its new cryptocurrency backed by the # 39; State.
President Nicolas Maduro has declared Petro as legal tender, and he said his initial offer of parts (ICO) has raised more than $ 5 billion from investors around the world. He even received the "Satoshi Nakamoto Award" from the Russian Association of Cryptocurrency and Blockchain, a prize he received for dubious reasons at best.
Notably, however, the legislature said that Petro was illegal, and many analysts continue to doubt its real existence.
But while Maduro claims the Petro as the solution to all the evils of Venezuela, the inhabitants of the country are turning to another cryptocurrency to secure their wealth in the turbulent economic context: Bitcoin.
Data peer-to-peer (P2P ) The LocalBitcoins cryptocurrency trading platform shows that the volume of VEB / BTC trades has stopped increasing throughout 2018. During the second week of April, this pair has reached 645 BTC in volume, approximately $ 5.1 million at current rate.]
Image from Shutterstock to photo
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