To smooth up the process of linking the national currency Bolivar to virtual one- Petro, the Venezuelan National Constituent Assembly plans to establish a central bank of cryptocurrencies. One of the members of the Venezuelan National Constituent Assembly, Hermann Escarra, revealed some details about the assembly’s future intentions regarding the crypto sector.
Escarra stated this while speaking for Reuters:
“The National Constituent Assembly of Venezuela…is preparing a reform to the Constitution that would include a central bank for crypto-assets and a superior court to the Supreme Court of Justice.” Escarra added “There will be the central bank with its functions in exchange, monetary and financial policy.”
The Reuters refer Hermann Escarra as “one of the most influential members of the assembly that prepares the changes to the 1999 constitution.” A draft for the constitutional amendment will be submitted “in 35 days to the Constituent Assembly.”
The current president of Venezuela, Nicolás Maduro, proposed the replacement of the 1999 Constitution in May 2017. The plan was suspended due to several reasons. A BBC report stated:
“The assembly was controversial from the start, with opposition activists denouncing it as unconstitutional while its supporters argued it would bring peace to the polarised South American nation.”
Escarra told about the new constitution:
“The reform is expected to include the petro, a cryptocurrency announced by the government of President Nicolás Maduro in February as a way to increase its foreign exchange earnings, in the midst of the economic crisis and the sanctions imposed by the United States.”
More about Petro
Launched in February 2018 by the country’s President, Petro is the Venezuelan cryptocurrency. Since its inception, the digital asset has attracted generated negative comments along with a lot of suspicions on its purpose and the influence it has. Reuters described it as:
“Cryptocurrency experts have said the petro suffers from a lack of credibility because of a lack of confidence in Maduro’s government and the mismanagement of the country’s existing national currency.”
In July, Maduro revealed that the Sovereign Bolivar, Venezuelan new currency will be tied to the Petro. The country’s new asset will be launched on 20 August.
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