Venezuelan President Nicolas Maduro has announced the possibility of paying for fuel with cryptocurrency. Starting from June 1, citizens throughout Venezuela can pay for petrol with the Venezuelan cryptocurrency El Petro.
El Petro is the first cryptocurrency issued by the sovereign government and backed by natural resources (oil‐backed one).
The Venezuelan government distributed El Petro to all social and age groups as a measure of social support. In fact, El Petro is the first cryptocurrency that was used to ensure social protection of the population.
El Petro runs outside the traditional banking system and acts as a means of payment in all areas of the Bolivarian economy, with the exception of fees and taxes related to the use of traditional banking platforms.
According to the results of the first week of applying the new fuel payment scheme, about 15% of the total number of refueling stops at local petrol stations and 40% of refueling stops at petrol stations owned by foreign companies were paid in El Petro cryptocurrency.
«The dynamics of using the cryptocurrency suggests that the Venezuelan government has a chance to reduce inflation in the country and create a secondary market for El Petro cryptocurrency circulation» — said Josilito Ramirez, head of the Crypto Assets Regulation Department of the Bolivarian Republic of Venezuela.
FFC Media appreciate to Crypto Assets Regulation Department of the Bolivarian Republic of Venezuela for the facilitation.
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