Initially developed in 2018 to solve economic turmoil, the PTR is still struggling to establish a foothold as a legitimate currency.
It has been two years since Venezuela developed the Petro (PTR) in response to massive economic turmoil. However, the currency still has a long way to go before it is recognized and adopted.
While the national government has made attempts to establish that the PTR is trading at around $80, it has been found on the open market for as little as $8. The price disparity has unsettled Venezuelans who are expecting to buy at the price that the government is insisting on.
The government has been determined in its efforts to integrate the Petro into the economy. It has been established as the only payment option for paying the holiday bonuses of public workers and for citizens to purchase their passports. The Petro also has an official wallet, called the PetroApp, where users store their funds.
These efforts to establish the token as a valid form of payment are sidetracked by disputes over its actual value. Several companies have stopped accepting Petros even as the government continues to forward it as a legitimate form of payment, which has led to tension between the government and the population.
Recently, c has also tried to establish the Petro as an avenue to compensate doctors for working against the COVID-19 pandemic.
Cryptocurrencies are generally welcomed in Venezuela. Bitcoin is viewed as more stable and a better store of value in comparison to the Bolivar and the Petro, both of which are expected to continue depreciating due to the impact of US sanctions and the plummet in oil prices that affect their role as an oil exporter.
Venezuela is going through the largest economic collapse outside of the war in the last forty-five years. The magnitude of their fall has surpassed Zimbabwe’s condition under the rule of Robert Mugabe and even as far as the fall of the Soviet Union.
The country is currently considering swapping the US Dollar for the Russian Ruble in mutual trade settlements, which may have the potential for something more in the future. There are speculations that Venezuela is looking to collaborate with Russia should attempts to regulate its economy continue to falter.