Venezuela Pegs Minimum Wages to National Cryptocurrency: Report

The Venezuelan national cryptocurrency is based on the DASH blockchain, and has many characteristics of a CBDC.

AccessTimeIconMar 4, 2022 at 6:54 a.m. UTC
Updated May 11, 2023 at 4:44 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Venezuela said its minimum wage would now be 50% pegged to the national petro (PTR) cryptocurrency, according to a report from Bloomberg on Friday.

  • The president of Venezuela, Nicolas Maduro, announced the new monthly minimum wage of 126 Venezuelan bolivars ($28). This represents a 18-fold increase to the national minimum wage, which would be 50% pegged to petro, the government cryptocurrency.
  • At the time of writing, the Venezuelan government did not immediately respond to request for further details.
  • Petro is built on top of the DASH blockchain and is centralized around government issuance, making it more like a central bank digital currency (CBDC) than a cryptocurrency.
  • Not much is known about the petro because its advertised block explorer is inaccessible. While the WayBack internet archive shows something that looked like a block explorer available in April 2020, the page has been blank ever since.
  • In theory, it is possible to purchase PTR with bitcoin (BTC) and litecoin (LTC) from either the Venezuelan central bank or local exchanges, however the prices vary wildly between the central bank rate and private exchange rate.
  • According to reports, most Venezuelans do not use PTR by choice rather out of necessity. For instance, pension payments are made in PTR.
  • It is also illegal for U.S. residents to hold or trade PTR due to sanctions imposed by the previous U.S. administration under Donald Trump.

UPDATE (March 4, 07:00 UTC): Adds 50% detail in the lead.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.


Read more about