Venezuela’s native Petro cryptocurrency has not been too successful so far. A new tax reform may help shake things up, yet it isn’t good news for actual cryptocurrencies.
The Petro has not lived up to the expectations from day one.
Another Futile Attempt to Promote the Petro
A cryptocurrency pegged to domestic oil reserves can work on paper, but not in a poverty-stricken region.
To increase demand and usage for this native currency, a new tax reform looms on the horizon.
That change will see cryptocurrencies such as Bitcoin, Dash, and Ethereum being affected the most.
Currently, there is a 16% VAT in effect for all monetary transactions in the country.
This tax reform would allow the Venezuelan government to charge extra VAT for decentralized cryptocurrencies such as Bitcoin.
How high this new rate will be, has not been confirmed at this time.
Rumors make a mention of an extra 5% to 25% per transaction.
While this move may drive people away from decentralized cryptocurrencies, it won’t cause an increase in Petro usage by definition.
Currently, it is still impossible to obtain this currency as a foreigner.
Even locals struggle to get their hands on the Petro, further confirming this project doesn’t seem viable.
It will be interesting to see how this new venture will pan out over the coming months.