Venezuela to Use Petro Cryptocurrency to Settle Trades With Russia: Report

The government of Venezuela is reportedly planning to settle trades with Russia by using the controversial Petro (PTR) cryptocurrency. This, according to a report from Russian government-backed media outlet RT (published on May 17, 2019), which mentioned that mutual trade agreements between Venezuela and Russia may also be conducted using the ruble.

Local news sources further noted that both Russia and Venezuela are looking to settle trades without using the USD.

$100 Billion Owed To External Creditors

According to Jorge Valero Briceño, Venezuelas Representative to the UN Office in Geneva, Switzerland, Caracas is expecting the Kremlins support in helping the South American nation to restructure its foreign debt. Recent estimates indicate that Venezuela is indebted to foreign creditors by approximately $100 billion.

US-led political and economic sanctions against Venezuela, particularly those which apply to the countrys oil industry, along with freezing USD accounts, put tremendous pressure on the Venezuelan economy. This, according to Briceño, who also noted that Venezuela, which notably has the worlds largest oil reserves, has been deprived of access to international financial aid and foreign direct investments (FDI) in its oil industry - due to crippling sanctions.

As confirmed in RTs report, the citizens of Venezuela are suffering from one of the worst economic crises in the nations history. Extreme levels of hyperinflation, which have now exceeded 10,000,000% this year, have forced many Venezuelans to resort to desperate measures.

Cryptocurrencies Are Too Technical For Most Venezuelan Residents

As CryptoGlobe reported on May 10, 2019, Alejandro Machado, the co-founder of the Open Money Initiative (OMI), a project dedicated to researching how money is used in collapsing monetary systems, had revealed that the majority of Venezuelans had not completely abandoned the Bolivar, the nations national currency.

While the Bolivar may have become worthless due to hyperinflation, Machado said that most people in Venezuela were still using the Bolivar because they had to, in order to survive.

While Machado acknowledged that bitcoin's trading volumes in Venezuela had surged to all-time highs, mainly on LocalBitcoins, he pointed out that most of the nations residents are not able to use cryptocurrencies due to their highly technical nature.

No Evidence Of Petro Being Used

An extensive report from Reuters revealed last year that there was no evidence of the Petro being used, domestically or internationally, to settle tr ...

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Tags: Venezuela, Russia, Report, Cryptocurrency, THIS, Inc., Government of Russia, RT, United States of America, Petro Coin, Tradesman