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Venezuela Is Forcibly Converting Pension Balances to the Petro?

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According to reports by Caracas Chronicles, Venezuela is forcibly converting monthly payments of pensioners into Petro. Petro is a cryptocurrency introduced by Venezuela and has been in controversy ever since. According to the blog, the country is forcibly taking away the fiat currency paid as pension and is transforming it automatically into Petros.

Previously, the pension amount that was to be delivered to the pensioners were sent in the pensioners’ bank account. The pensioner had to visit the branch and from there, he could withdraw fiat currency. However, now, Government has forcibly converted residents pension to Petros.

Strikingly, the government of Venezuela initially sends the funds into the pensioners’ web wallets. Once the funds are sent, the government withdraws them and exchange them with Petros of the same value. According to Caracas Chronicles, Petros cannot be used yet but can be converted back to fiat currency. Caracas Chronicles in their second tweet stated that the value of Petro in relation to fiat currency is shaky and unstable. The value of Petro has seen an increase from 9,000 to over 15,000 over a couple of weeks.

Nicolas Maduro, President of Venezuela made an announcement at a television event stating that for the countries pension system, Petros will be used. The sole purpose of introducing Petro was to advance monetary sovereignty. The entire proposal of Petro being used for the pension system of the country faced huge criticism and opposition by the national assembly. However, at a later stage, it was sanctioned by the US government.

Venezuela claims to have raised billions of dollars by selling Petro tokens. However, it is ambiguous who the investors are and what kind of money has been raised. The country claims that it has raised around $5billion by selling Petro tokens. A few days back it was reported by Venezuelan authorities that Petro was accepted by international experts. Not only that soon Venezuela is planning to convert its salary system using Petro. The nation also plans to start selling its oil in trade for Petro instead of US Dollars, which would eventually reduce the value of the dollar in the Oil market.

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