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The petro was claimed to be backed by Venezuela’s natural fuel, mineral, and oil reserves. Venezuela’s experiment with the petro has not made much progress nevertheless, and the petro doesn’t circulate usually as cash despite its legal tender status. In basic, legal tender can take two fundamental varieties.

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A authorities can simply ratify a market-determined commodity cash, such as gold, to be legal tender and agree to just accept tax payments and enforce contracts denominated in that commodity. Alternatively, a authorities can declare an adulterated commodity or valueless token to be legal tender, which then takes on the … Read More