Venezuela hopes to help ailing economy with cryptocurrency

As Venezuela suffers from skyrocketing inflation and faces difficulty in paying off its foreign debts, the country is looking to a new form of currency to maneuver around the crippling US sanctions.

People wait in a line to buy groceries at government regulated prices in Caracas, Venezuela (file photo).
AP

People wait in a line to buy groceries at government regulated prices in Caracas, Venezuela (file photo).

Too much money in circulation is fuelling the world's highest inflation in Venezuela, worsening a crisis that has gripped the oil-rich nation since the crude prices plunged in 2014. 

Now, President Nicolas Maduro says a new cryptocurrency dubbed "Petro" will be used to boost the economy. But experts say it's unlikely the virtual currency would help Venezuela pay-off its debts. 

Venezuela has an external debt of $150 billion, with foreign reserves under $10 billion. And by the end of this year, the South American country needs $3 billion to pay its bondholders. 

The government says economic crisis is the result of sanctions imposed by the US five months ago, which limit Venezuela's ability to borrow money from foreign lenders.   

TRT World's Juan Carlos Lamas reports.

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