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September 23, 2020
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Venezuela changes policy to allow fuel payment with cryptocurrency Petro

Change made Petro present a strong increase

Venezuela has made a major change in its policy, which offered subsidized fuels to its citizens amid fuel shortages across the country due to American sanctions. The policy change would mean that Venezuelans would now have to pay for the fuel they received almost free under government subsidies. The policy change would cause the price of gasoline to rise from almost zero to about 5,000 bolivars per liter, which is equivalent to 2.5 cents. Citizens can now pay for their fuel with cash or in the national cryptocurrency, Petro.

The addition of cryptocurrency payments may seem fascinating to the outside world, but it is quite problematic for the native, as the ad came with a catch.

The announcement cited that customers will not be able to directly use the Petro App to make payments in the national digital currency. This, however, creates a very complicated situation, as the Petro App is the only portfolio compatible with Petro. The ad read:

“Fuel purchases must be made through the electronic mechanisms available from Patria Wallet, through the Biopago System.”

The Biopago System is a biometric system created by the largest bank in the country and Patria Wallet is a government portal used to seek welfare services and social benefits for its citizens.

However, this platform is not compatible with Petro, making the announcement quite redundant if the government cannot make its Patria portfolio compatible with Petro. While this problem persists, the announcement itself helped Petro’s price rise 40% on local cryptocurrency exchanges.

The price of Petro reached 2.6 million bolivars, which is equivalent to approximately US $ 13.

Venezuela’s cryptocurrency boss is on the US’s most wanted list

While Venezuela made headlines for its policy change in subsidized fuel offers, it also made headlines in US markets, when ICE and US Homeland Security added Venezuela’s top crypto administrator, Joselit Ramírez, to the list of most wanted fugitives ; with a $ 5 million reward on his head.

The ICE accused Ramirez of money laundering and violating US sanctions. The agency also claimed that Venezuela’s crypto chief has deep-seated political and social ties to the drug lords. Ramirez took command of Venezuela’s cryptocurrency head in June 2018.

The US government has started investigating Ramirez since the beginning of the year because of his alleged connections to some of the most corrupt Venezuelan authorities. At that time, the US government also announced a $ 15 million reward to President Maduro and other officials. However, at this time, Ramirez was not on the most wanted list.

Source: BTC EG

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