Effective from the following week, people of Venezuela will be required to settle their passport fees using petro, the notorious government-backed digital currency, which is reportedly backed by oil.
Such an obligation for the Venezuelans has been revealed in an announcement made during a press conference last Friday, by the vice president of Venezuela, Delcy Rodriguez, prior to the official introduction of the currency November. This news comes after the Nichols Maduro’s press release, wherein it is claimed that future oil purchases shall also be performed using the PTR currency.
As per the vice president, citizens will have to pay 2 PTR coins for a new passport, with extensions to the passport costing 1 PTR coin. According to Bloomberg, this newly established price for the registration exceeds the monthly minimum salary by four times, meaning that passports will be out of reach for average citizens.
The implementation of these rules is going to put even more obstacles before those Venezuelans who want to travel outside of the country. For those who live across the border, the price of new passport will constitute 200 USD, with extensions to be purchased at half that.
Venezuela has been struggling against the hyperinflation for four years now, experiencing the price depreciation of its fiat currency, bolivar, and all the way through. Having the need to find the currency that would close the gap opened by bolivar, some of the citizens resorted to digital currencies, such as BTC and DASH, which proved to have more reliability in terms of being utilized as store of value and medium of exchange, to battle the impact of the raging inflation and crumbling bolivar.