Venezuelan President, Nicholas Maduro, has disclosed the details of a ‘surprise digital currency’ he is planning to launch.
What Could This Surprise by Nicholas Maduro be?
According to a press release on February 24, Maduro promised to revive the economy with a new cryptocurrency. The details on what exactly this surprise remains unclear. The president might be planning the digitization of Venezuela’s national currency – the Bolivar. Nicholas Maduro says his team is working on a project that is sure to raise eyebrows in the crypto world.
The President, whose tenure is still under dispute, did not reveal more details about the new project. During an annual conference last year, President Nicholas Maduro spoke about how crypto will “set the tone” for this year. He particularly highlighted “The revival of the use of Petro, of all cryptocurrency systems, and the use of blockchain technologies.”
Nicholas Maduro promised conference attendees that the Venezuelan economy was going to be 100% digital. Analysts have different reactions to the “surprise announcement.” While some see it as a commendable step, others do not think it is the best at this time.
Ray Falconi, a member of Venezuela’s National Cryptocurrency Association, expressed his opinion on the coin. He believes the government wants to use the digital Bolivar to include more dollars into the economy.
This could lead to more dollars in the economy, which could better the economy.
Could This be the Solution to Venezuela’s Economic Crisis?
For now, the Petro is the only state-backed cryptocurrency in Venezuela. This new ‘digital bolivar’ might not be tied to the Petro. The formation of new digital currency may just be the government’s effort to save a failing economy.
The Venezuelan economy has been nothing to write home about since 2011 when president Hugo Chavez died in power. The Petro was believed to have all the answers to the country’s crumbling economy, but unfortunately, it failed as well. Many Venezuelans are reluctant to use the coin and view it with caution.