The President of Venezuela has approved the use of the country’s cryptocurrency, the Petro, to be used to finance the building of new homes in the country.

Using Crypto for Good

Venezuela’s Minister of Habitat and Housing, Ildemaro Villarroel, has revealed that the country’s housing projects will be funded by Petro.

Launched in February, Venezuela’s new cryptocurrency is designed to supplement the country’s bolivar, in addition to helping overcome U.S. sanctions. Backed by oil, it is tied to the cost of a barrel, which is roughly priced at around $60. It is also produced and controlled by the government.

Notably, since the launch of the Petro, the U.S. has warned that it could violate sanctions against the country.

Despite this, measures are being put into place to use the altcoin. One of which is the financing of new homes for Venezuela’s homeless. According to a report from telesur, Nicolás Maduro, the country’s president, has approved 75 billion bolivares and 909,000 Petros for the job. At $60 a barrel, that equates to $54.5 million. This announcement actually shows that Maduro is actually following through with one of his programs as he stated back in March that he wanted to use the cryptocurrency to ease the country’s housing crisis.

According to the report, 33 companies are going through the process of working with the cryptocurrency. Villarroel says:

Together with the governors we review the plans that we will start up in the second quarter. In this second quarter the [Great Housing Mission Venezuela] will have an injection of financial resources, which this year will be protected and established with the Petro.

Inflation Above 40,000%

Venezuela is one country that suffers from high inflation rates. Coincidentally, a new report is suggesting that the country’s inflation rate has hit a new high. According to a report from Business Insider, it rose to 41,838 percent at the end of June.

As to where the blame lies is up for debate. Maduro places it on opposition activists and officials in Washington; however, economists state that Maduro runs unorthodox policies that have pushed the country into economic crisis. Not only that, but he has refused international aid to the country.

On top of that is the fact that Venezuela has defaulted on a number of its outstanding bonds. Figures put this at $60 billion. Yet, according to a March report from Al Jazeera, 100 million Petros could raise around $6 billion. The report states that this could help the country pay some of its obligations.

Despite this, though, U.S. President Donald Trump signed an executive order in March barring any U.S.-based financial transactions involving the altcoin. U.S. officials have said that it’s a scam.

However, while the altcoin may be failing to gain the acceptance of the U.S., it is being put to good use in the form of house building.

Do you think the Petro is a scam? Should Venezuela be able to use it to pay off their debts? Let us know in the comments below.

Images courtesy of Shutterstock and Twitter/@Minhvi_Oficial.

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