Venezuelan Government Decrees Crypto Operators to Pay Taxes in Cryptocurrency

On Monday, the Venezuelan government published the official gazette No. 6,420 dated December 28, which contains a decree No. 3,719 that points towards new tax payment rules for cryptocurrency users. Dinero publication stated that:

“The government of President Nicolás Maduro published a decree that will require taxpayers who carry out operations in foreign currencies or cryptocurrencies to pay their taxes in that same currency and not in bolivars.”

The decree also stated:

“the Venezuelan people are currently facing a fierce war waged by internal and external factors that pursue the deterioration of the economy, which is why it is necessary to adopt sufficient measures to ensure the strengthening of the current fiscal regime.”

The Ministry of Popular Power of Economy and Finance is in charge of the execution of the decree which is in effect, at the time of press.

The Article one of the decree notes that taxpayers in Venezuela who carry out operations in cryptocurrencies or any foreign currency authorized by the law must “determine and pay [their tax] obligations in a foreign currency or cryptocurrency”.

The decree enlists two exemptions; transactions of securities traded on a stock exchange and the export of goods and services carried out by public bodies or entities. The decree also mentioned that the tax refunds for cases established in the decree will be made in the national currency and not otherwise.

Maracaibo Municipality in Zulia state clarified that it will use the national cryptocurrency, the petro for the calculation of business tax, reported the publication. There was confusion amongst the residents as they thought it meant for non-cryptocurrency users to also pay their taxes in petro.

The intendant of Servicio Desconcentrado de Administración Tributaria [Sedemat], Jean Carlos Martínez clarified to Noticia al Dia publication, a local publication that “taxpayers will not be charged taxes in petros.” He further added:

“We are using the value of the petro as a reference unit to be able to determine the minimum tax since the ordinance of the current economic unit is still stipulated in percentages of gross income.”

He also clarified that the national cryptocurrency, petro has two values, one as a cryptocurrency and the other as a unit of account that translates into 9,000 sovereign bolivars, which will be used in passport procedures or current salaries.

The decree also mentions that the payment of taxes will be carried out depending on the economic activity of each company or microenterprise. Martinez was quoted in the publication saying:

“If someone had transactions in petro, bitcoin or other currency, [they] should declare [their income] according to the currency that [they] manage.”


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Author: Namrata Shukla
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Russia Will Buy $10 Billion in Bitcoin, Ditch US Dollar and Become Huge Crypto Whale: Russian Economist

According to a new claim from a Russian economist, the world’s 12th largest economy is about to pour $10 billion into Bitcoin.

Vladislav Ginko, a lecturer at Moscow’s Russian Presidential Academy of National Economy and Public Administration, says US sanctions are forcing Russia to diversify.

 Ginko told the Australian crypto outlet Micky that at this point, he believes Russia has no other option.

“US sanctions may be mitigated only through Bitcoin use. Because of US sanctions, Russia’s elite is forced to dump US assets and US dollars and invest hugely into Bitcoins. The Central Bank of Russia sits on $466 billion of reserves and has to diversify in case there is limited opportunities to do it.”

A new report from Forbes highlights the impact that US sanctions are having on Russia.

“Sanctions and isolation are having an impact on the Russian economy. Although Russia is not a big exporter to the U.S., canceled energy and defense contracts in Europe coupled with bans on financing Russia’s key lenders have had an impact on the economy. What else can explain the lackluster growth story in the country since 2014? Even higher oil prices have done little to lift the Russian economy.”

In July, the state-sponsored Russian news outlet RT said President Vladimir Putin gave a speech highlighting the need for alternative reserve currencies in global trade.

“Regarding our American partners placing limitations, including those on dollar transactions, I believe is a big strategic mistake. By doing so, they are undermining the trust in the dollar as a reserve currency.”

At that time, Putin said Russia has no plans to stop using the US dollar unless it is prevented from doing so.

In Venezuela, President Nicolas Maduro announced that the country’s newly created digital asset, the Petro, is an official government currency. The Petro is supposedly backed by the country’s oil reserves. After its launch, US President Donald Trump prohibited Americans from investing in it, claiming it was designed to avoid US sanctions.


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Author: Daily Hodl Staff
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Venezuela to Present Petro Crypto to OPEC as a Unit of Oil

The Venezuelan government is reportedly going to present its oil-backed cryptocurrency, the Petro, to the Organization of Petroleum Exporting Countries (OPEC) as a unit of account for oil.

According to local news outlet Telesur, the country’s petroleum minister and the president of state-run oil and natural gas company PDVSA, Manuel Quevedo, stated that Petro transactions will begin in the “first semester of 2019.”

On social media, PDVSA further revealed Quevedo claimed the Petro is the future of the Venezuelan economy, and that “growth and economic prosperity are equal to the Petro.” As CCN covered earlier this year Daniel Peña, the executive secretary of Venezuela’s Blockchain Observatory, told the Cuatro F newspaper he expected the cryptocurrency to positively impact the economy within “three to six months.”

Quevedo, while speaking at the headquarters of the National Superintendence of Cryptoassets and Related Activities (Sunacrip), an organization created to “regulate the activities that are executed by natural and/or legal persons connect to cryptoasset,” stated:

“We will use Petro in OPEC as a solid and reliable currency to market our crude in the world… We are going for growth and economic prosperity of our country giving a hand to the future since the Petro is a currency that is backed by mineral resources.”

Quevedo further emphasized the Petro is part of the country’s economic recovery plan, and as such all oil-based products are set to be commercialized in Petros. At the end of his speech, he called on all companies interested in working with him to “join his platform.”

The Venezuelan government has notably been pushing the Petro’s use. As recently reported, after bankrupting Venezuela the country’s leader, Nicolas Maduro, decided to launch a Petro savings plan that’s set to be available for 18 million Venezuelans.

The oil-backed cryptocurrency was first put for sale to the country’s residents on October 31, and can currently be purchased with cryptocurrencies like bitcoin and ethereum – but not with the country’s fiat currency, the bolivar.

Despite the government’s push, the Petro is a controversial cryptocurrency that has been criticized by the opposition in the country, and by other international organizations. CCN looked at the cryptocurrency’s whitepaper and found it appears to be a ‘blatant’ copy of Dash.

Meanwhile, Venezuelans in the country have been using cryptocurrencies to survive the government’s failures. So much so that bitcoin trading volumes in the hyperinflation-struck country recently hit record highs.


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Author: Francisco Memoria
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Venezuelans Must Now Pay Passport Fees with the Government’s Petro Cryptocurrency

Starting next week, Venezuelans will have to pay their passport fees with the petro, the controversial state-supported cryptocurrency that is allegedly backed by oil. This was announced in a press conference on Friday, Oct. 5, by the country’s vice president, Delcy Rodriguez, ahead of the coin’s official launch in November. This follows a similar press release by President Nicolas Maduro, who stated that oil purchases will now be made with petros (PTR).

According to Rodriguez, new passports will cost two petros, while extensions can be purchased half that. Bloomberg reports that the new registration price is four times the monthly minimum wage (around 7,200 bolivars), which takes it out of the hands of the average Venezuelan. The enforcement of the new rules will make it even more difficult for Venezuelans to travel out of the country. For Venezuelans living abroad, the cost for new issuance will be $200 while extensions will be $100.

Venezuela has been battling with hyperinflation since 2014, which saw its national currency — the bolivar — depreciate rapidly in value. Needing a currency to fill the void created by the bolivar, some Venezuelans switched to cryptocurrencies such as bitcoin and later, dash, which became arguably more reliable as a store of value and medium of exchange, to combat the side effects of the rampant inflation and the nosediving bolivar.

Seeing the remarkable ascendancy that cryptocurrencies were enjoying, especially dash, the Venezuelan government decided to issue an oil-backed cryptocurrency, the petro, in Dec. 2017.

While the creation of the state-backed cryptocurrency has created a more favorable environment for non-centralized tokens to flourish in the country, it has also come with all forms of oppositions and controversies.

In an earlier announcement last week, the Venezuelan President had claimed that petro would be listed on the six major crypto exchanges for trading, but this hasn’t stopped it from courting controversy. Following the announcement, ethereum core developer Joey Zhou shared a tweet in which he called the state-owned cryptocurrency a “blatant dash clone,” at least according to its whitepaper.

Adoption for dash has, however, been on the increase, so much that Ryan Taylor, CEO of Dash Core Group, called the country the second largest market for dash.


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Author: Jimmy Aki
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Venezuela’s Maduro Orders Banks to Adopt Petro Cryptocurrency

Venezuelan banks have been ordered to use the petro, the Maduro government-launched cryptocurrency, as a unit of account.

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Wire services AFP reported Tuesday that “all financial information” must be denominated in both the bolivar – Venezuela’s official currency – as well as the petro, which was controversially unveiled in December. Maduro’s government has claimed, without evidence, to have raised billions of dollars during a presale earlier this year, despite pushback from opposition leaders in the country as well as international critics, including the U.S. government.

Indeed, in March, U.S. president Donald Trump approved new sanctions against Venezuela that specifically targeted the petro.

TIP

The development is the latest mandate to come out of the Maduro government related to the petro. It was previously announced that the state-owned oil and gas company Petróleos de Venezuela (PDVSA), will begin using the petro as a unit of account, and officials have also ordered that government-funded pensions and salaries be anchored to the cryptocurrencies.

The latest news also comes on the heels of a United Nations report stating that since 2014, 2.3 million people have fled Venezuela amid the country’s economic crisis.


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Author: Anna Baydakova
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Venezuela’s President Devalues Fiat Currency by 95%, Pegs it to Crypto ‘Petro’

Over the weekend, Venezuelan President Nicolas Maduro began broad economic changes that ultimately ties Venezuela’s currency to the contentious ‘oil-backed’ cryptocurrency Petro.

LIONBIT

As CCN reported, President Maduro announced the plan last week and has followed through. As part of the fiscal changes, The Central Bank of Venezuela devalued the nation’s currency by 95% (about five zeroes) due to the ongoing hyperinflation of the Bolivar. The new value and currency is now renamed to the “sovereign bolivar,” which is pegged to the oil-backed Petro cryptocurrency that Maduro launched earlier this year as an ERC-20 token.

A History-Making Event, but under Poor Conditions

Venezuela’s switch to a cryptocurrency-pegged currency marks the first time that a nation has done so. However, economists warn that the subsequent devaluation will only worsen the inflation rated, which is growing at an annualized rate of a whopping 108,000 percent, according to Bloomberg.

As CCN reported, Venezuelans were already liquidating their bolivars into Bitcoin earlier this year, in spite of a government ban. The population has also been fleeing Venezuela to avoid the momentary crisis, which now borders on a humanitarian crisis. Though the conditions are not rosy for the history-making event for the cryptocurrency, President Maduro ultimately followed through with sweeping monetary changes, while the world watches the eventual outcome.

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The switch to the Petro is far from a solution to the Venezuelan economic crisis. The country still teeters on economic collapse. President Maduro also faces losing power over the country or an outright ousting. An assasination attempt with a drone occurred earlier in August while Maduro gave a speech.

The dramatic changes reflect the “government’s willingness to do what it takes to stay in power,” Raul Gallegos, an associate director at Control Risks, told Bloomberg from Bogota. “Maduro looks vulnerable, clearly something could happen.”

Banks and ATMs have been closed while they scramble to accommodate the new currency rules.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Author: Jack Mathis 
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Venezuela Looking to Launch a Central Bank for Cryptocurrencies

Venezuela is reportedly looking to lunch a central bank for cryptocurrencies, as the country’s National Constituent Assembly is preparing to reform the Venezuelan Constitution to include it, along with a court above its Supreme Court.

LIONBIT

According to Reuters, information on the development was provided by Hermann Escarrá, which the outlet describes as “one of the most influential members of the assembly that prepares the changes to the 1999 Constitution.”

A draft of the changes to the country’s Constitution is set to be presented in 35 days to the board of the Constituent Assembly. Per Reuters most of what will change is still unknown as high-ranking government officials have only generally addressed the move. Escarrá revealed, however, a central bank for cryptos is coming.

He was quoted as saying:

“There will be the Central Bank with its functions in exchange, monetary and financial policy and the Central Bank will be incorporated.”

The changes will reportedly include the Petro, a controversial oil-backed cryptocurrency Venezuela launched ealrier this year, and a “e court of constitutional guarantees” that’s set to be above Venezuela’s Supreme Court.

After launching the Petro, Maduro ordered several state-owned companies to accept it, and has revealed the country “may” charge for exports in it. Venezuela notably attempted to offer India crude oil at a 30% discount if it paid in Petros, a discount India refused.

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The cryptocurrency is seen as a way for the country to draw in foreign investments and bypass international sanctions. Century-old think tank Brookings Institute has claimed it undermines legitimate cryptocurrencies, and president Trump banned US citizens from the cryptocurrency, a move Venezuela touted was “free publicity.”

Per Escarrá, changes to the Constitution will also see Venezuelan companies have greater access to foreign investment, specifically in the oil sector. He stated: “there will be an opening, provided that the State has the majority.”

The development comes shortly after Maduro announced a new fiat currency called the Bolivar Soberano (Sovereign Bolivar), which is set to help take five zeroes away from the bolivar, Venezuela’s current fiat currency. As CCN reported, the Bolivar Soberano is set to be pegged to the Petro.

Venezuela has been dealing with an ever-increasing inflation rate, which according to Bloomberg’s Café Con Leche Index is now seeing one cup of coffee cost 2 million bolivars, up from 2,300 in the past 12 months. The government’s moves are presumably being made to hinder its inflation’s growth.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Author: Francisco Memoria
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Petro Announced as Official Currency in Venezuela

Venezuela has been facing economic difficulties for years now, and President Nicolas Maduro is not shying away from any solution. Starting August 20th – next Monday – Venezuela is set to have two official currencies: the bolivar and the petro, to be valued equally and interchangeable.
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According to media reports, in a speech televised on TeleSUR, Maduro said, “As of next Monday, Venezuela will have a second accounting unit based on […] the value of the Petro. It will be a second accounting unit of the Republic and will begin operations as a mandatory accounting unit of our PDVSA oil industry.” He emphasized that, “This system completely end the speculation of the Venezuelan currency.”

This means that Petro will, technically, become bolivar’s stablecoin, similar to what Tether (USDT) strives to become for the US dollar. The president confirmed that the valuations of each currency will come from the Central Bank, and added hints about a new salary system built for paying wages in Petro.

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As Venezuela has the largest oil reserves in the world, the petro is backed by a barrel each – as of January 2014, the country has a total of 297 billion barrels. It is speculated that petro was made as a way for the country to skirt around strict international economic sanctions.

The country’s officials have previously announced their intent to use petro to build “villas for the homeless.” A Venezuelan official added that the controversial cryptocurrency will “represent a protective shield for housing construction.” Meanwhile, the coin itself has been deemed a scam by various rating sites.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Author: Sead Fadilpašić
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