The value of digital currencies in South American countries

By Wirba Brice Divine Ransinyuy. [email protected]

Living in the scope that the world is fending on several things in order to make the livelihood of mankind much better is not something easy as some continents are still far backward. This is notably the case with the African and South American countries. These continents have been plagued with much disaster, natural as made man disaster. This has not only affected their life directly, but it has also affecting their economic system, thereby causing a constant disability in the nation. This is particularly the case with South American countries starting from Argentina, Brazil, Peru or Chile. Due to these frequent unstable markets and restrictions, it has affected their currency in a very significant manner.

With such a hindrance to their currencies, most South American countries find themselves living below poverty and as such their currencies have no value. As a result of this, South American countries like Venezuela have brought out an alternative currency in the name of digital currency in order to face the difficulties the face day in, day out with their unstable currency. At least with a national digital currency, they are from having an unstable currency, thereby it will be a solution to the country`s need of financial stability.

In the year 2018 during the month of February, the Venezuelan government decided to launch a national digital currency in the form of cryptocurrency known as the Petro or better still as Petromoneda. Though it first came to light in December 2017, it was only on February 2018 that it finally took on official form and stand. Petro, the Venezuelan digital currency came in as support and backing of the country’s oil, gold and mineral reserves since digital currencies use an encrypted code that protects it from attacks and makes it very safe and secure. The value of the digital currency came in place in order to bypass the United States of America’s sanctions that affected the Venezuelan economy very negatively and moreover, it was put place in place to counteract the financial blockage put in place by the United States of America under President Donald Trump’s administration. This national digital currency, Petro can be exchanged with fiat currencies like the Russian Rubble, Turkish Ira, the euro and the Russian ruble. This idea of valorising the Venezuelan national digital currency was spearheaded and brought to light by the Venezuelan president, Nicolas Maduro himself.

Furthermore in order to strengthen and reinforce the Venezuelan national digital currency by giving it more value the Venezuelan President Nicolas Maduro publicized the launching of a Petro-funded crypto bank that will be able to support the ideas and concepts coming from students and youths in order to strengthen the country’s economy.

Moreover, another fact showing the value of digital currencies is the use of the national digital currency Petro in order to fund the building and construction of homes and houses for the homeless and the poor.