Venezuela Moving to Accept Taxes in State-Issued Crypto

Venezuela might soon mandate collecting taxes in Petro, the state’s digital currency, as the Bolivarian Council of Mayors have signed the “National Tax Harmonization Agreement.”

The country’s vice president, Delcy Rodríguez is leading the campaign and also the implantation of the new information Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term and monitoring system for companies to pay taxes in crypto.

“It is the simplification of procedures, making the State's administrative activity at the service of the people more efficient, of the economic sectors that stimulate economic activity in the productive and commercial areas,” Rodríguez said.

According to an official announcement, out of the total 335 municipality representatives, 305 mayors, all under the mandate of the United Socialist Party of Venezuela (PSUV), are in favor of the new tax collection mechanism, while the rest still want to collect taxes in fiat.

The non-PSUV mayors are also pointing out there is a lack of technology infrastructure to process Petro Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term.

Can Crypto Save the Country's Economy?

Venezuela is going through economic distress due to hyperinflation over the last few years. To tackle this, Nicolas Maduro-government introduced an oil-backed digital currency, Petro, when the crypto market was at its peak.

Since then, the Venezuelan government is pushing for the usage of the state crypto. Thus, the country is accepting passport payments with Petro, and oil companies are also seeking payments in the cryptocurrency.

The South American country recently announced that it received 15 percent of all fuel payments across petrol stations in the country in Petro. The report also highlighted that 40 percent of all these PTR transactions came through foreign petrol stations.

Notably, Venezuela is facing harsh sanctions from the United States and other major countries for the corruption allegations against its government.

The US authorities have also put a $5 million bounty on the Venezuelan crypto superintendent for his deep political, social, and economic ties with multiple alleged narcotics kingpins.