From Nasdaq, Inc.:

1. Venezuelan government has ended its official cryptocurrency, the Petro. The currency, launched in 2018, failed to solve the country’s 359.99% inflation rate in 2023. It was backed by the country’s oil reserves, but still failed to gain widespread adoption in Venezuela or abroad.
2. The decision to eliminate the Petro is seen as an acknowledgment of failure, especially with a presidential election on the horizon. However, Venezuela’s hyperinflation and corruption issues were not addressed by the Petro. Talks with the U.S. for sanctions relief could help the country unlock its oil reserves, the largest in the world.
3. The failure of the Petro may have Venezuela looking for new strategies to improve its economy and reduce corruption. Following in the footsteps of El Salvador, known for its positive news and Bitcoin adoption, could be a path forward for Venezuela. Bitocin adoption has its pitfalls, but a Central Bank Digital Currency isn’t a guaranteed solution either.



Read more: Here’s Why Venezuela’s Failed Cryptocurrency Could Not Fix 359.99% Yearly Inflation