The government of Venezuela has reportedly started converting pensioners’ monthly payments from the country’s fiat currency, the bolivar, to its oil-backed cryptocurrency Petro, without giving them a choice.
According to the Caracas Chronicles, a politics and economics-focused website based in Venezuela, the country’s pensioners are notified every time their monthly payments arrive, but this time received a second notification informing them the funds were “for the concept of Savings in Petro.”
Per the website, pensioners have started depending on government bonuses after years of hyperinflation saw their savings become worthless. Bloomberg’s Café Con Leche Index shows Venezuela’s inflation rate is now close to 200,000%.
Depending on these payments saw pensioners regularly visit a government-owned portal, paria.org.ve, which they have to use to transfer the funds to their bank accounts. The Caracas Chronicles claims the Venezuelan government deposited the bolivars to the pensioners’ accounts, and then converted them to its oil-backed cryptocurrency.
“They sent people the bolivars, and then, from their accounts, they exchanged them to petros.”
Notably, Venezuela has been pushing for the Petro’s adoption for months now. As CCN covered, the government has ordered local banks to adopt the cryptocurrency, and made it an official alternate currency in the country.
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