On Sunday, as reported by the BBC, Venezuelan President Nicolas Maduro unveiled “Petro,” a new kind of cryptocurrency which would be supported by commodity reserves. According to Reuters, Maduro made the announcement during a Christmas television special, stating that the as-yet-to-be-launched cryptocurrency would be backed by oil, gas, gold and diamonds. The national currency, has fallen in value by a staggering 95.7% against the dollar in the past year. But the dictatorial president of Venezuela, Nicolas Maduro, has a solution: the creation of a national digital currency.
Where to buy Petro?
President Maduro does not give any details about the introduction of the new cryptocurrency. It is only known that Petro is to have cover in natural resources such as: oil, gas, gold and diamonds. The announcement bewildered some followers of cryptocurrencies, which typically are not backed by any government or central banks. Ironically, Venezuela’s currency controls in recent years have spurred a BTC fad among tech-savvy Venezuelans looking to bypass controls to obtain dollars or make internet purchases. So far, there is no information about where to buy petro and what is its price.
As we can read on Finder, Petro will be mined in a similar way to other cryptocurrencies giving fees to miners which will immediately add value to the Petro coin and opens up the possibility of foreign nations accruing the Petro for their services processing transactions on the Petro blockchain.
According to QZ com, the Petro (PTR) will reportedly be sold in hard currency and other cryptos, not domestic bolivars, and Venezuela says it will enable so-called atomic swaps with other cryptos, which doesn’t require a third-party exchange.
Cryptocurrency and blockchain technologies have gained traction in finance, with the price of Bitcoin reaching $11173 at the time of writing and traditional banking sectors taking note of how the technologies could be used to further their own businesses. Venezuela may be followed by a host of other countries such as Russia (CryptoRuble) and Israel (Digital Shekel) in creating a digital currency.
“We are facing a financial war against the country, which we have denounced, and the opposition has denied. There are businesspeople who are unaffected by Donald Trump’s blockade. With this, we will join the 21st century,” announced Maduro.
Venezuela wants to solve its economic crisis
Venezuela has been struggling in recent weeks to make payments toward the $120 billion worth of debt it owes to foreign lenders and bondholders, many of whom are in the United States. But because of sanctions that restrict some Venezuelan government officials from using the US banking system, paying back those lenders can be very difficult. Also, Venezuela has huge debts with China and Russia, and both countries take their debt payments in oil, which severely restricts the country’s supply. The biggest problem the petro faces is that the international community doesn’t trust Venezuela’s government.
The director of analysis at the Washington-based Center on Sanctions and Illicit Finance – Yaya Fanusie said that even if Venezuela were able to develop the Petro and find people willing to use it, the crypto-currency likely wouldn’t help the country circumvent sanctions.
We wish you good luck Petro!
Source: Wikipedia, vox. com, bitcoinist. com