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Demand for bitcoins in Venezuela is breaking records in the run-up to public Petro sale

Bitcoin trading volumes have set a new record in Venezuela in the prospect of the oncoming economic turmoil.

According to statistics from Localbitcoins trading platform, the weekly bitcoin amount traded in Venezuela has reached 1073 BTC (about $7.1 million). The previous record came in September with 898 BTC ($5.95 million) exchanged during week three.

Venezuelans keep on turning to bitcoin as a means of securing their savings amidst continuing hyperinflation caused by ill economic strategy implemented by the country’s government.

Back in August, Venezuelan Government carried out one of the most radical financial reforms in the country’s history. Bolivar was stripped of 96% of its nominal value and substituted by the new “sovereign” bolivar, which, in turn was tied to Petro cryptocurrency. Being recognized as a “sovereign cryptoasset backed and issued by the Venezuelan state”, Petro is now regarded as national cryptocurrency, with public sale scheduled for November 5.

A bipartisan group of U.S. senators insists on the introduction of tougher sanctions against Venezuelan state-backed cryptocurrency Petro. The senators propose to forbid circulation of Petro and extend an executive order of March 2018 prohibiting U.S. residents from providing related software to the Venezuelan authorities.