• Venezuela’s Minimum Wage Is Tied to the National Cryptocurrency

  • Venezuela’s minimum salary will now be 50 percent connected to the national petro (PTR) cryptocurrency.

    • Venezuelan President Nicolas Maduro announced a new monthly minimum salary of 126 Venezuelan bolivars ($28). This amounts to an 18-fold rise in the national minimum wage, which would be 50% pegged to petro, the government cryptocurrency.
    • At the time of writing, the Venezuelan government has not responded to a request for additional information.
    • Petro is based on the DASH blockchain and is centered on government issuance, making it more analogous to a central bank digital currency (CBDC) than a cryptocurrency.
    • Because the petro’s claimed block explorer is inaccessible, little is known about it. While the WayBack internet archive displays something that appeared to be a block explorer in April 2020, the page has been blank since then.
    • In theory, PTR can be purchased with bitcoin (BTC) and litecoin (LTC) via the Venezuelan central bank or local exchanges, although the prices differ greatly between the central bank rate and the private exchange rate.
    • According to reports, most Venezuelans use PTR out of necessity rather than choice. Pension payments, for example, are made in PTR.
    • Due to sanctions enacted by the previous US administration under Donald Trump, it is also prohibited for US residents to hold or trade PTR.
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