The move comes at a time when Maduro’s socialist government is in the midst of a crackdown on domestic freedoms and Caracas’ financial transactions have been hamstrung by Western sanctions.
Citizens of the crisis-torn nation are struggling to cope with widespread food shortages, the collapse of its traditional currency and hyperinflation — which the International Monetary Fund (IMF) has forecast to hit 13,000 percent in 2018.
Meanwhile, almost 75 percent of Venezuelans are reportedly suffering from weight loss and unemployment in the South American country is expected to skyrocket to 32 percent by 2022.
Harry Colvin, director and senior economist at Longview Economics, told CNBC ahead of the petro’s launch that he was “doubtful” the introduction of the world’s first state-backed cryptocurrency would be a success.
“Venezuela has been known for misappropriation of assets in the past and the central bank has just created hyperinflation so I imagine there’ll be trust and transparency issues,” he said in an email.
