Venezuelans to Be Paid at Least Half a Petro a Month

Venezuelans to Be Paid at Least Half a Petro a Month

Economy & Regulation

Announcing a 60-fold increase of the minimum monthly salary, President Maduro promised Venezuelans they will be paid at least 0.5 petro, once his monetary reforms are in place next week. The national crypto will be exchanged at a rate of $60 USD and the new “sovereign bolivar” will be pegged to the digital coin.   

Also read: This Fall May Bring More Crypto-Friendly Jurisdictions

1 Petro = 60 Dollars = 1 Barrel

Venezuelans to Be Paid at Least Half a Petro a MonthNicolás Maduro

Venezuelan president Nicolás Maduro revealed the fixed price of the country’s cryptocurrency, the petro, and a new minimum wage as part of a package of measures aimed at improving the socio-economic conditions in the South American country. The policies will be implemented on Monday, when the new, denominated brolivar will be introduced to replace the highly inflated national fiat.

Starting from August 20, 1 PTR will be officially exchanged for $60 US dollars – approximately the value of a barrel of oil on the international markets. The state-issued digital coin can also be purchased with the newly issued “sovereign bolivar” which takes away five zeros from the current “strong bolivar.” One petro will cost 3,600 new bolivars (now 360 million).

With inflation expected to reach 1 million percent by the end of the year, according to the IMF, bolívar fuerte is one of the fastest depreciating national currencies in the world. However, the new bolívar soberano will be “anchored” to El Petro, the oil-backed cryptocurrency introduced by the administration of the leftist Venezuelan leader earlier this year.

60-Fold Increase of the Minimum Salary

President Maduro also announced that the minimum monthly wage in the country will be raised to 0.5 PTR, 1,800 sovereign bolivars or $30 USD. That’s 60 times more than the current 3 million old bolivars (30 after the denomination). The Venezuelan head of state also said the government will compensate small and medium-sized enterprises for the difference in the basic wages in the next 90 days. It will also raise the VAT from 12 to 16 percent.

The changes come after Nicolás Maduro shared his intentions to denominate the bolivar back in March. The new banknotes were expected to have three zeros less than the current and were supposed to be issued in early June. The monetary conversion was subsequently postponed and in late July Venezuelan authorities announced that the petro-pegged bolivar will be introduced on August 20, getting rid of five zeros.

State Retaking Control of Economy

Venezuelans to Be Paid at Least Half a Petro a MonthEarlier this week, the Venezuelan president said that starting from Monday his economically troubled country will have two official units of account – the petro, and the sovereign bolivar. The old and the new version of the national fiat will be circulating together for some time before the “strong bolivar” is phased out.

Maduro assured his compatriots that Banco Central de Venezuela (BCV) and all public and private banks already had the new banknotes and were actively preparing to implement the changes. He added that besides salaries, pricing will also be adjusted and the price ceiling mechanism will be restored. On Friday, the president warned merchants there would be no excuses for any price hikes. Quoted by El Nacional, he stated:

There has to be a government, we have to retake the regulatory role, the authority of the state and the government to enforce economic rules.

Venezuela issued the petro in February becoming the first nation to adopt its own cryptocurrency. The crypto is backed by its oil reserves, one of the largest in the world. Caracas has been trying to introduce the coin in bilateral trade with countries like Russia and India but official agreements have not been reached yet.

According to resent reports, the Islamic Republic of Iran, another country hit by US lsanctions with which Venezuela maintains close relations, is stepping up efforts to develop its cryptocurrency. Iranian government wants to use the coin to circumvent the restrictions reimposed by Washington this month which are mainly targeting its ability to acquire US dollars.

What do you think will be the effect of the reforms Maduro’s administration is introducing? Share your opinions in the comments section below.


Images courtesy of Shutterstock.


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Uber’s Largest Shareholder SoftBank Denies Deal With Bitmain, Other Investments Uncertain

An official from SoftBank has denied their involvement in the investment deal with Bitcoin (BTC) mining behemoth Bitmain that was reported last week by both crypto and mainstream media sources.

As previously reported, Bitmain had allegedly sealed a pre-Initial Public Offering (IPO) financing deal which had brought its valuation to $15 billion. Both Chinese tech conglomerate Tencent and Japan’s SoftBank — another tech giant whose 15 percent stake in Uber makes it the drive-hailing app’s largest shareholder — were purportedly involved.

After receiving an anonymous tip that Tencent and SoftBank were not actually involved in any deal with Bitmain, Cointelegraph reached out to SoftBank and Tencent for confirmation.

As a response to Cointelegraph’s request for information, Kenichi Yuasa of the Corporate Communication Office of SoftBank Group Corp. stated:

“Neither the SoftBank Group Corp. nor the SoftBank Vision Fund were in any way involved in the deal.”

Despite numerous requests for clarification, no one at Tencent has denied or confirmed the deal to Cointelegraph.

In response to a media request from Cointelegraph, Bitmain refused to comment on the matter.

The original story on SoftBank and Tencent’s participation in a deal with Bitmain was reported by Chinese publication QQ on August 4. In a Google Translated version of the article, QQ stated:

“The mainland officially completed the Pre-IPO round signing. This round of investors includes Tencent, Softbank [sic], and China Gold. The current round of financing is 1 billion US dollars, and the pre-investment valuation is 14 billion.”

After the story originally broke, there were no official confirmations or denials by either SoftBank or Tencent of their participation in an investment deal with Bitmain.

QQ’s report was picked up by mainstream media sources like Business Insider, which reported on August 14 that Bitmain had closed a “$1 billion funding round led by Chinese tech giant Tencent and Japan’s SoftBank,” linking their source as crypto media site CCN. Yahoo! Finance also repostedthe story on Bitmain’s valuation from CCN, also linking to coverage of the matter from crypto news source CoinDesk.

As the media began reporting SoftBank and Tencent allegedly participated in a deal with Bitmain, bringing the company’s reported valuation to $15 billion, Blockstream CSO Samson Mow tweetedAugust 11 an image — reportedly from the Bitmain pre-IPO investor deck — showing the company allegedly had a large amount of Bitcoin Cash (BCH).

On August 12, Samson Mow also tweeted two images of Bitmain’s Q1 results, one in Chinese and one from Morgan Stanley, commenting:

“Why is Bitmain raising capital so fast & only showing Q1 results to pre-IPO investors? We’re well into Q3 now. The reason is Q2 was a disaster. Bitmain is sitting on a massive $1.24 billion USD in inventory & S9 prices dropped by ~85%! Q2 losses range in the $600-700 millions.”

In response to Mow’s tweets, Crypto Herpes Cat published a follow up on Medium, explaining several theories as to how Bitmain ended up with so much BCH — other than by selling BTC for BCH, as Mow purported — and what they are doing with their ASIC miners in a bear market, writing:

“How do you realize the value of this monolith crypto business and your holdings? You IPO and pass the bag on in one huge lumped stock offering and hope investors don’t realize all of your current assets are very, very illiquid.”

As early as June, Bitmain CEO Jihan Wu had hinted at the firm’s plans to launch its IPO on the Hong Kong Stock Exchange. Chinese publication QQ — the same source that alleged both Tencent and SoftBank’s involvement in the recent financing deal — has recently suggested that the firm will be valued at $30 billion.

The seemingly refuted investments come after a year of reports that appeared to indicate Bitmain’s astonishing profitability.

AltcoinToday.com

Photo via Shutterstock.

Source: Cointelegraph

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Korean Government: 11 out of 21 Crypto Exchanges Complete Security Measures

Korean Government: 11 out of 21 Crypto Exchanges Complete Security Measures

Security

The South Korean government has announced the outcome of its inspection of 21 cryptocurrency exchanges. While a number of exchanges have completed implementing both short-term and wallet management measures, many security vulnerabilities remain at most exchanges.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

21 Exchanges Inspected

Korean Government: 11 out of 21 Crypto Exchanges Complete Security MeasuresSouth Korea’s government has announced the result of its mid-term review of 21 cryptocurrency exchanges. The inspection was conducted in June and July by the Korea Internet and Security Agency (KISA) and the Korean Ministry of Science and Technology.

KISA security experts visited each exchange to check on the 85 items identified during its previous crypto exchange inspection, conducted between January and March. They focused on 17 items which needed immediate implementation; six were short-term measures and 11 concerned crypto wallet management.

Korean Government: 11 out of 21 Crypto Exchanges Complete Security Measures“Intermediate checks were carried out in such a way as to confirm whether improvements had been made, focusing on the 17 security items recommended for quick action,” the government explained. These items include dedicated security and management staff, a password management system, crypto deposit and withdrawal controls, and a system to monitor wallets for abnormalities.

The agencies revealed that 11 out of 21 exchanges have completed the short-term measures. In addition, eight of them have also improved their wallet management systems. The eight are Upbit, Bithumb, Korbit, Coinnest, Coinlink, Coinone, Coinplug, and Huobi Korea, local media detailed. The government reiterated:

In the management of virtual currency wallets, most of the vulnerabilities in the business have not yet been improved.

Furthermore, twelve companies have been found to have insufficient security procedures to prevent data leakage and loss of funds from their cold wallets. Ten companies have inadequate systems to monitor hot wallets for suspicious activities. In addition, at least ten businesses lack wallet backup and recovery measures.

Further Inspections Planned

The final check on the implementation of recommended measures will be carried out next month, the agencies noted, adding that any new crypto exchanges will also be inspected.

Korean Government: 11 out of 21 Crypto Exchanges Complete Security Measures“Because of the weak security of virtual currency exchanges, we should be careful in investing,” Kim Jong-sam, a spokesperson for the Ministry of Information and Communication, commented. “We will continue to check virtual currency exchanges to improve security.”

Referencing the hack of Coinrail and Bithumb in June, KISA described that “the leakage of virtual currency due to the hacking of recent dealers has directly led to the damage of users,” adding that after checking 85 security items, “there are many dealers with low security.”

Emphasizing that they have been asking crypto exchanges to “improve security levels by completing the recommendations for improvement,” the agencies revealed:

We plan to support the improvement of the security level of the dealers through continuous inspection of the dealers.

What do you think of the Korean government’s review? Let us know in the comments section below.


Images courtesy of Shutterstock and Kisa.


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