Venezuela’s Petro A Scam ?
So says local merchants in Venezuela who are refusing to accept the cryptocurrency :
” According to Venezuelan media platform Tal Cual, merchants in the country have abandoned Petro as a payment method. Reports say merchants who tried to liquidate their petro holdings at the Bank of Venezuela received devalued Bolivar amounts.
The reason for this devaluation is because the central bank used the petro rate at the time of purchase. However, with the Bolivar losing close to 99% of its value in 2019 alone, merchants are seeing their Petro stash liquidated for the equivalent of “pennies on the dollar.”
Commenting on the situation, Josefina Salvatierra, executive director of Consecomercio — Venezuela’s National Council of Commerce and Services, remarked:
‘ The few who are liquidating are doing so to the indicator of the moment in which the sale was made, which obviously aggravates the situation even more because in a hyperinflationary process it is very difficult to sell on credit without practically indexing the debt. ‘ ”