Please don’t skip this message — it only takes a minutes to read. Sorry to bother you, but time is running out.

Bitcoin is freedom. If you think independent, ‘bitcoin-only’ media is important, if you believe information and education about bitcoin matters for adoption, and if you have gained something from our work, we would be grateful if you could chip in $21. 

Join the 2% of our readers who occasionally make a donation. If everyone reading this donated just $21, we would reach our target in a couple of hours. $21 is all we ask for. To cover the cost for our servers, editors, writers, and thumbnail artists we rely on our readers’ generous support. 

How You can chip in:

  • Send sats as a tip to a writer. All of our writers have an active tipping widget.
  • Join our campaign on 
    Awesome perks are waiting for you such as the limited edition Bukele Blend Coffee from El Salvador.

Your support ensures that Bitcoin News stays independent with a laser focus on Bitcoin and only Bitcoin.


Venezuela Announces Petro to Bolivar Exchange Rate as Inflation Exceeds 100,000% Per Year

Venezuela Announces Petro to Bolivar Exchange Rate as Inflation Exceeds 100,000% Per Year

Support free writers: > send a tip

written by

The President of Venezuela, Nicolas Maduro, has announced that the Petro will have an official exchange rate of USD 60, which is apparently equivalent to a barrel of Venezuelan oil.

The Bolivar fuerte (VEF) will be tied to the Petro with an exchange rate of VEF 360 million per Petro. The Sovereign Bolivar is projected to be issued in late August 2018, amid a hyper-inflation crisis. After it is issued, each Petro will be worth 3,600 Sovereign Bolivars, since VEF will be converted to Sovereign Bolivar at a 100,000 to 1 ratio.

This is exciting news in the sense that this is the first time in history a nation has made a cryptocurrency an official national currency. The Petro could thrive in Venezuela since Bitcoin is in high demand in Venezuela but its use is frowned upon. People can buy and use Petro in Venezuela and not have to worry about upsetting government officials.

Venezuela’s VEF is the weakest fiat currency in the world. Venezuelan citizens seem to be using USD, EUR, other globally popular fiats, Bitcoin, and other cryptocurrencies as the Bolivar is losing too much value every day to be useful as a currency.

Bloomberg is tracking the value of the Bolivar with the café con leche index, which simply tracks the price of a cup of coffee at a café in Caracas. A year ago, a cup of coffee was VEF 2,300, now it is VEF 2.5 million, yielding an incredibly destructive inflation rate of 108,596% per year. The unofficial exchange rate is nearing VEF 10 million per USD, and the new official exchange rate is VEF 6 million per USD. The Venezuelan government hadn’t been issuing exchange rates for a long time, so this represents a 96% devaluation from the previous exchange rate but it is still too high of a rate according to the currency markets.

The Petro is supposedly backed by oil but it is not disclosed how this is done and it is questionable if Petro really has oil reserves backing it. Regardless, the most interesting thing is there are 100 million Petros, and at a value of VEF 360 million each, this yields a market cap of VEF 36 quintillion worth USD 3.6 billion. If the Venezuelan government is being truthful, this would cap the amount of Bolivars that can be printed for the first time in history.

If Venezuelan government really means to fix the exchange rate of the Petro to the Sovereign Bolivar, that would require an end to money printing.

The positive things to take away from this news is that Venezuela is making a cryptocurrency, the Petro, an official national currency, which is a big milestone for cryptocurrency. Also, Venezuela is making a Central Bank for cryptocurrency, which is another first in the world.


Follow on Twitter: @bitcoinnewscom

Telegram Alerts from

Image Courtesy: Pixabay

Help spread this article :) is NOT INVESTMENT ADVICE

Opinions expressed are entirely their own and do not necessarily reflect those of

For informational purposes only. Individuals and entities should not construe any information on this site as investment, financial, legal, tax, accounting or other advice. Information provided does not constitute a recommendation or endorsement by to buy or sell bitcoin, cryptocurrencies or other financial instruments. Forecasts are inherently limited and cannot be relied upon. Do your own research and consult a professional advisor. The opinion of authors do not reflect those of 


bitcoin shop miami

Read More Bitcoin News

Hayek And Bitcoin

Hayek and Bitcoin

Hayek passed long before Bitcoin’s inception, but in his book The Denationalisation of Money, he argued for nothing short of stripping the state of its monopoly power of money itself.

Read More »


bitcoin shop miami

Join our Newsletter

Video of the Week


Latest on Bitcoin News

Join our Newsletter