The passing of a law requiring all government bodies in Venezuela to accept the Petro as a means of payment has inspired crypto enthusiasts into a frenzy. Localbitcoin users in Venezuela have set a new record by trading 2.7 trillion Bolivars, week ending 14th April.
Coin Dance, which monitors trading figures per country, equates the amount traded on the week ending 14th April to be about $55 million.
The astonishing figures dwarfs those of the previous week, which saw around $35 million traded, compared with the even lower sum of $18 million traded at the end of March.
The Petro Becomes Legal Tender
As was expected, Venezuela’s government has declared the Petro to be legal tender in different sectors of the Venezuelan economy. The numerous calls to halt the process, which has been labelled as a scam, have not deterred President Maduro’s plans to enforce the world’s first government-backed cryptocurrency into circulation.
The declaration of the Petro as an official legal tender has emboldened Venezuelans, which has spiked trading volumes in Localbitoin and other exchanges in the country.
Inflation Rates Through the Roof
Venezuela has witnessed astronomical inflation rates in the recent past which was one of the reasons to introduce the Petro cryptocurrency. Now, Reuters reports that the country’s inflation is set to hit 13,000% by the end of the year.
According to Reuters, the inflation rates for the first quarter of 2018 was at 454%.
The publication noted,
Monthly inflation in March was 67 percent, down from 80 percent the previous month with annual inflation for the past 12-month period being 8900%.
Bitcoinist reports that President Nicolas Maduro now wants the country’s oil production increased to enhance the use of Petro. The President has empowered the Venezuelan oil minister to create, annul or modify oil contracts for different companies operating in the country.
The popularity of the controversial cryptocurrency is expected to see many Venezuelans using other cryptocurrencies in their daily activities to evade high inflation in the country.
This can only mean that Bitcoin trading in the country will become even more popular and the records will keep being smashed.
Meanwhile, Russia is expected to play a critical role in the popularity of the Petro, given that US citizens have been prohibited from interacting with it.
Earlier this month, reports surfaced alleging a trade deal between Russia and Venezuela. It has been said that Caracas is due to start repaying its debts to Moscow using the Petro.
However, Russia has strongly refuted these claims as it did with allegations over its role in the development of the altcoin.
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