The Venezuelan government has reportedly put an end to its official cryptocurrency, the Petro.
But what was the Petro? And why did it fail to solve the country’s 359.99% inflation rate in 2023?
The Petro: A Failed Experiment
Venezuela may have become the first country to launch and abolish its own cryptocurrency. According to all accounts, the official website, which is still accessible, does not allow the purchase of the Petro anymore. The site displays an “Under Maintenance” message when trying to register.
The Petro was launched in 2018 as a means of evading U.S. sanctions. It achieved full functionality in 2020 but did not enjoy widespread adoption in Venezuela or abroad. It was not for lack of trying either.
The Venezuelan government attempted to use it as a unit of account internally, ordering it to be used for social housing initiatives and pegging 50% of the minimum wage to the Petro.
The currency was even backed by…
