Venezuelans will pay taxes in the country’s national cryptocoin Petro (PTR)

The authorities plan to introduce changes in the framework of the program proposed by the President of the country, Nicolas Maduro, to improve taxation. Information about this appeared on the site of the government.

What is known about the initiative? Mayors of Venezuela signed an agreement on “tax harmonization”. The document implies that citizens of the country will pay taxes in cryptocurrency. The changes apply to 305 local municipalities. The campaign, among other things, is designed to expand the area of application of the national cryptocurrency.

It is noteworthy that many mayors signed the agreement despite the fact that there are no technical solutions to implement the initiative in the regions under their control. It is known that only 91% of mayors support the President’s project. 30 of 335 mayors represent the opposition. Opponents of the Maduro regime will continue to collect taxes in fiat money.

Venezuelan Vice President Delcy Rodríguez was appointed responsible for the implementation of the initiative. The specialists will develop a system for the exchange of information and monitoring of payments. The innovation should simplify the payment of taxes and make the procedure more efficient.
At the time of this writing, the official website of Venezuela’s national cryptocurrency says that 1 Petro is equal to $ 58.75.

What’s wrong with Petro?

The cryptocurrency Petro was issued in 2018. In this way, the regulators wanted to bypass the sanctions pressure of the USA and other Western countries. Despite active attempts made by the authorities to popularize the cryptocurrency, locals preferred other digital assets to it.
In the circumstamces of hyperinflation in the country, the citizens of Venezuela had to look for other currencies to preserve their money. It also affected demanded for Bitcoin which is high in Venezuela.
In the fall of 2019, the information appeared on the network that the Central Bank of the country began registering digital wallets for storage of the national cryptocurrency. In early 2020, local authorities announced their readiness to use Petro as a means of payment for oil. But still it was not enough to popularize the cryptocurrency. In order to change the situation, Nicolas Maduro decided to create a network of casinos where visitors can place bets in the PTR.

The current level of distribution of Petro can be assessed if you look at the statistics provided by local regulators. In early June, the Venezuelan authorities announced that the citizens of the country pay the national cryptocurrency for fuel at gas stations in 15% of cases.

As you see, the Venezuelan authorities are trying to make Petro a popular means of payment, sometimes even at the expense of local traders who are suffering losses for this reason.

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