Petro is a controversial crypto currency developed by Government of Venezuela. It was launched in February 2018
Government of Venezuela announced that they will start commercial use of national crypto currency from October 2018. Venezuela is the first country in the world to introduce national crypto currency citing economic crisis and devaluation of Bolivar (Venezuela’s national fiat currency)
Country is facing massive economic issues like hyper inflation, devaluation, economic restrictions, limited financing sources. In these circumstances Venezuela introduced new economic policy indicating commercial use of Petro. They launched Petro is February 2018 but it wasn’t listed on any of the International Crypto exchanges, no one was trading petro and no one was using it either, in fact former finance minister of Venezuela called this project an imagination with no realistic use. Citing this criticism from opposition, President Nicolas Maduro announced that the country will start the commercial use of national crypto currency from October.
He appeared on the national TV and said,
“Petro comes into play as a currency for exchange, purchase and convertible currencies for the world.” Which took lot of people by surprise as many of them were thinking that this idea is not realistic and will not work at all.
When Venezuela launched the crypto currency, they mentioned that Petro will be backed by Oil, but according to a recent report by Reuters , Petro is not backed by oil at all and of no use as of now because neither it’s being traded at any of the exchanges nor anyone using it, so it’s a total waste as of now. It was reportedly backed by State owned Oil company PDVSA, which in fact is in $45 billion debt already, so that’s making the matter worst for potential investors as they can’t invest in a currency which is backed by a company already in massive Debt.
The way forward
Despite of all the criticism that Venezuela’s president is facing regarding Petro, he still tied up this crypto currency with his national economic reform plan, according to that plan, petro will be used for all the commercial usage just like Bolivar, from Banking to investing, salaries to social usage. He is also expecting Petro to be used as leading source of financing from International community as they are facing sanctions from US as far as financing in US dollar is concern.
Is Toronto Next to Accept Bitcoin for Property Taxes?
Toronto is the biggest city of Canada with a population of more than 6 million. It’s also one of the leading global financial centers which makes it an attractive place for investors.
Bitcoin has emerged as the leading cryptocurrency in the world and attracted a lot of attention from financial investors. There are many crypto exchanges and investors in Toronto, which makes it an important destination for crypto startups and investors.
Recently, there has been a surge in usage of Bitcoin in the Real Estate world as lot of companies around the world are now accepting Bitcoin for buying and selling of properties. In April 2019, Innisfil, A town located in Ontario, at a distance of about 1 hour drive from Toronto, announced that they will accept Bitcoin for property taxes at the municipal level. In July this year, Richmond Hill announced that they are ready to accept Bitcoin as a payment method for property taxes.
Evan Kuhn, Co-Founder of a Toronto based crypto exchange Coinberry believes that integration of Bitcoin as a payment method for property taxes in Toronto can reduce cost, not only for tax payers, but for municipalities as well. Kuhn mentioned
“It doesn’t cost homeowners to use the service, and it costs the municipalities far less in processing fees”
“A credit card company charges a 3% fee,” he said. “Our fee is .5%, so that’s a lot more beneficial for the municipalities.”
He further explained the entire process to make it simple for the users and for the authorities. “When a resident makes a payment through our exchange, the company immediately converts the Bitcoin into Canadian Dollars and pays the relevant authority, so in basic concept this entire process works like a credit card system but with lower fee for both parties”
Morning Crypto Roundup
- Crypto market entered into a consolidation phase, with market cap at around $265 billion, market is currently trading in a range
- Bitcoin stays above $10,000
- Gray scale reported in a recent report that there are 7.1 million active Bitcoin users worldwide with more than 32 million Bitcoin wallets.
- After Innisfil and Richmond Hills, is Toronto next to explore an opportunity to pay property taxes through Bitcoin?
- According to a report from CryptoCompare.com, Untrusted crypto exchanges are dominating the crypto volume with more than 2/3 share