According to Bitcoinist, a new crisis is growing in Venezuela, which is already associated with the circulation of the national cryptocurrency El Petro. It is known that a digital asset in a country experiencing wild inflation is used in fact on a par with fiat. However, retailers are now refusing from Petro.
Merchants do not want to receive a national digital asset as payment for goods and services, because after converting digital coins to fiat, they get the traditional currency at too low a rate. The reason is that the Central Bank of the state exchanges cryptocurrency at the rate of its purchase. Last year was extremely unfortunate for El Petro: coins fell in price by almost 99%, and the cryptocurrency of citizens who believed in a state asset, essentially depreciated.
It came to the point that the digital asset actively promoted by the Venezuelan leader Maduro began to be called an outright scam. So, the former head of the National Trade Council, Maria Uzkategui, called the country’s crypto project fraud, since El Petro holders, including sellers who receive coins as payment, cannot do the same with cryptocurrency now that they could do last year.
A number of media reports that a special body will be created in Venezuela to ensure that sellers accept the local digital asset as a means of payment.