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Venezuela to Use Petro as Unit of Account for Salaries, Goods and Services

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Venezuelan President Nicolás Maduro has announced that the Petro will be used as a unit of account in the country.

Venezuelan President Nicolás Maduro has announced that the national oil-backed cryptocurrency, the Petro, will be used as a unit of account within the country, news outlet ABC International reported August 14.

Nicolás Maduro reportedly announced in a television address, that the state oil company PDVSA will use the Petro as a unit of account. Additionally, the government will introduce a new salary system and a pricing system for goods and services that are anchored to the Petro. ABC quotes Maduro:

“As of next Monday, Venezuela will have a second accounting unit based on the price, the value of the Petro. It will be a second accounting unit of the Republic and will begin operations as a mandatory accounting unit of our PDVSA oil industry.”

According Maduro, the implementation of a new Petro-based salary and pricing system “will mean a substantial improvement in the income of the workers” and will help “the maximum retail price to reappear.”

Starting August 20, Venezuela will have two government currencies, the Petro and sovereign bolivar, the latter of which will be indexed to the former. The sovereign bolivar will take five zeros away from the current national currency, the bolivar fuerte, in an eventual monetary reconversion.

The Central Bank (BCV) will reportedly “begin to publish the official figures of the value of the sovereign bolivar according to the Petro and the value of the petro according to international currencies.” Maduro also said that the BCV and private banks in the country have already received the new banknotes.

The Venezuelan government launched the pre-sale of the Petro in February, with 82.4 million of the world’s first national oil-backed cryptocurrency available at that time. The country introduced the currency in an attempt to attract foreign investors and skirt U.S. and E.U. sanctions, as well as overcome catastrophic hyperinflation which is projected to hit 1,000,000 percent in 2018.

According to the Petro whitepaper, the cryptocurrency fully complies with Venezuelan legislation, though the opposition in the National Assembly publicly claimed that issuing Petro was illegal.

While some parts of the document lack fine details and others are not backed by any sufficient arguments, there are some clear economic use cases. Paying taxes and other settlements with state bodies would be at least 10 percent cheaper with the Petro, which is planned to be expanded into other payment markets in the future.

The whitepaper says that the Petro can be be easily converted into U.S. dollars and other currencies, which will help Venezuela in export trade. Still, there’s a possibility that it could be purchased with funds that were received illegally at crypto exchanges or privately, and then exchanged to oil that can be ‘laundered’ and documented to eventually be sold through above-board business practices in various jurisdictions.

Home Alt Coins Elio Motors Launching ICO To Build Cars? | Can Eliocoin Save This Car Company?
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Elio Motors Launching ICO To Build Cars? | Can Eliocoin Save This Car Company?

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According to a newly launched website, it looks like Elio Motors may be in the beginning phases of attempting to launch their own cryptocurrency called Eliocoin.

The controversial car company has been fund raising for their Elio automobile which has 3 wheels, seats 2 people, and somehow gets 84mpg on the highway. Although the original estimated costs were much lower than $7,000 the currently listed price on the company's website is about $7,450 for a base model.

The big question among Elio enthusiasts and skeptics alike is "Will this car ever come out?"

Elio Motors has certainly seen its fair share of fund raising, and has also seen some setbacks that have prevented them from being able to fully produce even their first unit for sale. Up until now all we have seen are working prototypes, which have done an extensive Press circuit at various PR events and auto shows around the world.

It remains to be seen if Eliocoin will be a success for this company, or if they still remain unable to get their act together to release a viable consumer product.

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Comment(11)

    1. Thanks Dude! It’s been too long, but I have been around. I can’t believe it’s taken me this long to make a video :-/

    1. That’s exactly what I thought. Like……it’s been about 10 dang years, if they were going to sell a car I would think it would have happened by now. – Steve

  1. Steve , sounds like they have built a product and soliciting funds with no return. Isn’t there a name for that … scamming..

    1. Hard to believe that they have been able to keep it up for so long, because you’d think going on this long without delivering a product would have stirred up more legal trouble by now. -Steve

  2. Elio.. has been saying they’re going to launch every year since 2014. And it never happens. They’re not getting a penny from me. I invested in the year they told me they were going to start producing cars when they got their Factory in Illinois. And never got my money back. And they keep doing it over and over and over

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