Venezuela's plan to gain bigger financial freedom through the Petro cryptocurrency has raised many questions. DW asked OANDA Senior Market Analyst Craig Erlam about the odds of the Petro succeeding.
The South American country is spiraling further into a humanitarian disaster spurred by the government's economic policies, which have caused inflation to skyrocket 24,571 percent in the past 12 months.
Venezuela has begun the process of introducing a new digital currency. It's eventually meant to give the highly indebted Latin American nation greater financial leeway and reduce its dependence on capital markets.
Venezuelan President Nicolas Maduro has ordered the release of 100 million units of a new digital currency, the "petro." It will be valued at the current price of a barrel of oil, around $60.
As cryptocurrencies become increasingly mainstream, a small island nation will launch the first digital legal tender. Lawmakers hope the residents will use the SOV for everything from paying taxes to buying groceries.
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