Venezuelan President Nicolas Maduro said that the government has approved to use the Petro cryptocurrency as the basis for calculating benefits payments to combat inflation.
New banknotes launched in Venezuela
In early March, the Central Bank of Venezuela announced that it will issue three new banknotes while the hyperinflation process continues. It was stated that these banknotes will be worth 200,000, 500,000 and 1 million bolivars. Last year, inflation in the country was 2,959.8 percent.
Speaking on Saturday to celebrate May 1, Maduro said:
“Today, I can announce a proposal that I have launched, approved, to” Petrolize “the social benefits of centralized, decentralized management and public employees of state public companies.”
Maduro stressed that the measure was aimed at protecting social benefits from inflation and suggested that pensions be calculated on Petro, the value of which depends on the cost of oil, gold, iron and diamonds.
There is a lot of pressure on Maduro
As part of their attempt to overthrow Maduro, the US and other western countries, which supported Venezuelan opposition leader Juan Guaido, imposed prohibitive sanctions on Venezuela and froze their assets abroad. According to Maduro, western sanctions targeting the state-run oil and gas company Petroleos de Venezuela (PDVSA) and its affiliates are an attempt to seize foreign assets and prevent the firm from completing transactions.
Last year, inflation in Venezuela was 2,959.8 percent.