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Venezuela’s Mayors sign tax law for El Petro crypto adoption

The Bolivarian Council of Mayors in Venezuela recently joined the government’s plan to expand the adoption of El Petro cryptocurrency, an official Venezuelan crypto coin. This agreement came into place after the mayors signed the National Tax Harmonization Agreement for three hundred and five municipalities.

Taxes will be collected in El Petro

The mayors agreed to use El Petro (PTR), a system that collects taxes using crypto, to help collect payments of sanctions and taxes despite the lack of the required technology in some municipalities. According to Nicolas Maduro, the president of Venezuela, the use of Petro is a means of the country becoming more financially independent and solve the country’s economic problems as the system is dependent on oil reserves, gold and diamond.

The use of cryptocurrency is becoming widespread in Venezuela due to the new campaigns carried out by the government. In fact, most of the citizens in Venezuela are currently using cryptocurrency to protect themselves against hyperinflation.When it comes to the adoption of El Petro, Delcy Rodriguez, the vice president of Venezuela, will carry the responsibility of implementing a single registry of taxpayers using a digital consultation tool. Rodrigues will also be in charge of the creation of information exchange and monitoring system to help companies record payments in the state cryptocurrency.

El Petro crypto eases payment process

 Venezuela has three hundred and thirty-five mayors (335) with 91% of them under the United Socialist Party of Venezuela while 30 of the mayors are led by the opponents of Nicolas Maduro’s regime.  A majority of them support the new system while the non-Maduro supporters are still collecting tax in the Venezuelan fiat currency, Bolivar. This is because some of them do not have the required technology to process Petro Payments.

According to Rodriguez, the vice president of Venezuela, Petro payments simplifies the procedures, making the administrative services to the people more efficient and stimulates economic activity in commercial areas. On the 11th of June 2020, the government reported an average of 15% of fuel payments at petrol stations were made using the Petro system after the government announced that it will sell gasoline at a cheaper price in exchange for the use of the oil-backed cryptocurrency, El Petro. In addition to this, the local media reported that 40% of the transactions were passed through foreign petrol stations. The rise in cryptocurrency system of payment came during the first week of the government’s plan to promote the widespread use of the Petro System.

Image courtesy of Pixabay

Edward Nored

Edward Nored

Edward is a naturally curious BTC lover with a deep interest in blockchain, fin tech, fields which he dedicates his time to researching.


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