The Venezuelan government has made a 95% devaluation of the bolivar on Monday, and its new currency is now backed by a digital oil cryptocurrency of the country: Petro. According to the IMF, the country's inflation will reach 1.000.000% in 2018. Venezuelan President Nicolas Maduro announced on Friday in a televised speech the introduction of this new currency, the sovereign Bolivar, which would count five zeros less than the current bolivar. The value of this currency is modeled on that of Petro, the cryptocurrency launched by the Venezuelan government last spring. The government hopes to bypass the lack of liquidity and financial sanctions of the United States. Chinahad expressed the wish to achieve a such currency, but without going further.
Previously, only one USD cent was required to buy a full tank of fuel in Venezuela. But you also needed two weeks of savings to pay a piece of meat. Currently, one Petro is equal to USD 60, or 3,600 sovereign bolivars (against 248,200 classical bolivars). The Petro is considered as a "stablecoin", it is supposed to be indexed on the oil barrel price. However, no audit entity can verify that each petro is well coupled with a real quantity of oil. The lack of technical specifications on the internal functioning of petro has been criticized by analysts. No method is described to convert petros into barrels. And like the other cryptocurrencies, petro exposes itself to risks of piracy.
As soon as petro was released during the spring, the United States banned its own citizens from buying or selling the cryptocurrency in the broader context of sanctions against Venezuela. Iran is also preparing to launch its own cryptocurrency.