Venezuela’s Bolivar Sees 454% Inflation in Q1 as Maduro Hawks the Petro

3 months ago admin2 Comments Off on Venezuela’s Bolivar Sees 454% Inflation in Q1 as Maduro Hawks the Petro
Advertisement

Join our community of 10 000 traders on Hacked.com for just $39 per month.

Runaway inflation continues to devalue the Venezuelan Bolivar (VEB), even as the country’s authoritarian government seeks to divert attention from the floundering economy by hawking its “Petro” cryptocurrency.

According to Reuters, prices in Venezuela rose by 454 percent during the first quarter of 2018 and have swelled by 8,900 percent over the past 12 months.

Those numbers are from the opposition-controlled National Assembly and are largely in line with estimates from independent economists. Venezuela’s central bank, meanwhile, has not published official inflation data in more than two years.

This hyperinflation has left Venezuela on the brink of economic collapse, and residents 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 — or 1.8 million people — will have left Venezuela.

But rather than address these problems, the government of what was once Latin America’s wealthiest country instead continues to sing the praises of the Petro, its new state-backed cryptocurrency.

President Nicolas Maduro has declared the Petro to be legal tender, and he has claimed that its initial coin offering (ICO) has raised more than $5 billion from investors across the globe. It even received the “Satoshi Nakamoto Prize” from the Russian Cryptocurrency and Blockchain Association, an award it received for reasons that are dubious at best.

Notably, though, the legislature has declared the Petro to be illegal, and many analysts continue to doubt that it actually exists.

But even as Maduro touts the Petro as the solution for all of Venezuela’s ills, the country’s residents are turning to another cryptocurrency to secure their wealth amidst the turbulent economic backdrop: Bitcoin.

venezuelaVEB/BTC Weekly Trading Volume | Source: CoinDance

Data from peer-to-peer (P2P) cryptocurrency trading platform LocalBitcoins shows that VEB/BTC trading volume has steadily increased throughout 2018. During the second week of April, that trading pair saw 645 BTC in volume, which works out to roughly $5.1 million at the present exchange rate.

Featured image from Shutterstock.

Follow us on Telegram.

Advertisement

cryptocoinsnews.com

Related Posts

Congressional Candidate Vows to Gauge Voter Sentiment With Blockchain

admin2 2 months ago
The crypto candidate – it has a nice ring to it. And Brian Forde, former head of MIT’s Digital Currency Initiative, is making that his new title. The author of... Read More

Report Warns SAFT May Increase Legal Risk of Token Sales

admin2 8 months ago
Far from insulating token issuers against regulatory actions, the proposed SAFT framework may actually increase the risk certain sales run afoul of securities laws, according to a new report... Read More

Monero Mining Malware Hits Apple Macs

admin2 2 months ago
Advertisement Get exclusive analysis and cryptocurrency insights on Hacked.com for just $39 per month. A new Mac-based cryptojacking attack was reported this past week on Apple’s forums, forcing users... Read More

(+) Week in Review: ‘2x’ Cancellation Drives Bitcoin Cash to Record Highs; Stocks Fall

admin2 8 months ago
It was a week of major developments in the cryptocurrency market, as backers of Segwit2x aborted their mission and Bitcoin Cash (BCH) surged to record highs. In conventional markets,... Read More