Using Crypto For Good: Petro Building Homes in Venezuela

Jul 5, 2018 at 19:39 Update Date :Jul 5, 2018 at 19:39 UTC

The mainstream use of cryptos for making billions and generating huge wealth is being questioned by putting it to use for the upliftment of masses.

While we are struggling to make the most out of cryptocurrency for our narrow personal profits and motives, the Venezuelans are using their cryptocurrency Petro to get rid of homelessness in their country. After four months of launching their own oil-backed cryptocurrency, the Venezuelan government will be undertaking a housing project completely funded by the altcoin.

Venezuela’s Minister of Habitat and Housing, Ildemaro Villarroel, announced the construction of cost-effective and decent houses for the homeless families. The local news outlet, Telesur, said in a report that the villas will be financed as part of the country’s housing project, “la Gran Misión Vivienda Venezuela (GMVV)”.

33 local businesses are said to be already going through the technical, financial, and logistical processes to implement the project. Villarroel, who is quite optimistic about the initiative, said, “Together with the governors we reviewed plans that we will start up in the second quarter, in this second quarter the GMVV will have an injection of financial resources, which this year will be protected and established with the Petro.”

The Venezuelan cryptocurrency was designed as a complement to the Venezuelan Bolivar, primarily to overcome the sanctions imposed by the US.

The state-issued cryptocurrency leverages their biggest export, oil, with each barrel backing each token.

Nicolás Maduro, the president of Venezuela has reportedly approved 75 billion bolivars ($750,000) and 909,000 petros, which roughly amount to $54 million (calculated at its ICO price of $60 per barrel) to execute the proposition.

The Latin country is being grappled by the inflation, as is the whole world in general. The International Monetary Fund had projected the Venezuelan hyperinflation to soar as high as 13000% this year. According to a Business Insider report, the inflation in the country has hit an all-time high of 41,838% as of last month. In addition to that, the financial health and reputation of the Latin country are plagued by a number of outstanding debts of almost $60 billion.

However, the silver lining in the cloud is the fact that the use of petro could raise enough fund to clear the burden of debts.

Going by an Al Jazeera report, 100 million petros are expected to raise around $6 billion, which can eventually help the country pay off some of their obligations.

In spite of the apparent positive development being brought about by the crypto, US President Donald Trump has banned the use of Petro in any US-based financial transactions.

Although Petro has not gained the American acceptance, it is being used for the greater good.

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