Hermann Escarra, a Venezuela National Constituent Assembly member, stated that he country’s government is working on amending the constitution to allow for the new crypto bank.
As the economic crisis plaguing Venezuela continues its downward spiral due to lower oil prices, corruption, and the failure of a socialist system. The financial abyss that Venezuela has fallen into showed the collapse of the economy, public services, security, and healthcare. In order to curb the crumbling fiat currency, Venezuela released its own Petro cryptocurrency backed by the country’s oil reserves, back in February.
The country’s government is printing the bolivar (VEF) at an unsustainable rate with in an inflation rate reaching over 25,000%. The IMF sees that the hyperinflation in Venezuela critical state will reach a crippling one million per cent by the end of this year at its current rate, although this speculation does have naysayer calling the prediction ridiculous. The financial collapse comes with a recent attempt to assassinate President Maduro this past weekend just lays the roadmap to demise of the oil-rich country.
In a last-ditch effort to save the country from complete collapse it seems unlikely like the creation of the Petro will do anything to tide the deluge. Escarra announced the latest scheme on Thursday, August 9th:
“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… the draft changes to the Constitution will be presented in 35 days to the board of the Constituent Assembly.”