Venezuela has purportedly converted the monthly bonuses of pensioners’ into the state-backed crypto Petro, say the reports of Caracas Chronicles, an English language politics and economics blog, December 12.
According to the blog, the government of Venezuela is taking the fiat currency (which is assigned to the elder people), and converting the bonuses for Venezuela oil-backed cryptocurrency Petro.
Pension Converted into Bolivars
As per the rules, the process of withdrawing the Bolivars (fiat currency of the country) is pretty simple; a payment received by the pensioners in the form of fiat currency – the funds are shifted by the pensioner to his bank account – withdrawn of bolivars from any local branch. However, the actual scenario is quite opposite, as the government is apparently converting the bolivars of pensioners to its state-backed crypto Petro.
This shows that the whole process follows the government sending the payments to the pensioners in form of fiat, which indirectly shows that funds are transferred to the web wallets of the residents, later; they are replaced with the same value of Petros.
How to use Petros?
There is no certain solution to how the pensioner will use the Petros to their use, as the cryptocurrency is rarely accepted in the country. As per the post of the blog, it is possible to convert the Petros back to its basic form – bolivars, but the whole process is pretty complex. What most to be worried about is, the value of petrol compared to Bolivar is unstable; rising from low 9000 to over 15,000 within a span of a few weeks.
The message sent from the government is translated by the English blog as:
“MOTHERLAND WALLET: CREDIT for an amount of Bs.S. 1,800.00 for the concept of Elderly Love Pensions (Third month Christmas bonus 2018) on 12/07/2018.
MOTHERLAND WALLET: DEBIT for an amount of Bs.S. 1,800.00 for the concept of Savings in Petro on 12/07/2018”
The sale of Petro has been officially started in November. As per the reports, the top officials like Maduro have purchased the crypto through their official website. Presently, the crypto is not yet available on any of the top-100 crypto exchanges which are listed CoinMarketCap.