A New Form of Social Welfare in Venezuela

Maduro Vows to Airdrop Currency to Venezuelan Citizens as Part of “Christmas Bonus”

Venezuelan President Nicolás Maduro came out late last week stating that eligible Venezuelans will be airdropped 0.5 Petro tokens, a digital currency created by the Venezuelan government in October of 2018. Petro was the first cryptocurrency officially launched by a government, yet has still struggled to amass adopters during the first year of its existence. There are many reasons for this lack of adoption, including an understandably high level of distrust toward the government, but Maduro insists that the currency can prevail despite various hurdles. In an effort to combat these low levels of adoption, Maduro announced on Friday that public sector workers, retirees, and past and present military members will be eligible to receive 0.5 Petro tokens courtesy of the Venezuelan government. He hopes that this will incentivize more Venezuelan citizens to begin using the Petro and incorporating it into their every day lives.

What is Half a Token Really Worth?

At the time of writing, 0.5 Petro tokens has a market value of roughly $30 USD. This may not seem like a lot, but when you take into consideration the fact that the minimum wage in Venezuela is less than $10 USD per month, this half token becomes substantially more significant and may serve as a massive incentive for citizens to begin learning about Petro. In order to claim the giveaway, users must download PetroApp, the official government cryptocurrency wallet. Through the app, users will be able to transfer funds and purchase certain goods. Further, users will be able to exchange their Petro for Bitcoin, Litecoin, and Dash, all through the PetroApp. Through this “Christmas bonus” and the funding being deployed for ongoing social housing initiatives, the amount of Petro flowing through the Venezuelan economy will inevitably increase in the near future. What is yet to be seen, however, is whether or not this injection of new capital will significantly affect the price of Bitcoin, and more importantly, whether or not it will improve the quality of life for Venezuelan citizens.

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