Venezuela launches its cryptocurrency, the petro :


With this motto, President Nicolas Maduro intends to circumvent the sanctions imposed by the United States, which have degraded the economic situation of the country, with an abysmal debt.

It's one more cryptocurrency, in a universe that has thousands, but it is particularly talking about it ... The "petro" was officially launched this Tuesday by Venezuela, which is becoming the first country to have its own sovereign virtual currency.


President Nicolas Maduro announced that each "token" petro would be equivalent to a barrel of domestic oil. About 100 million oil chips must be issued, for a total estimated value of about $ 6 billion. Unlike other cryptocurrencies, the "petro" should not be the subject of intense speculation, being backed by crude prices.

Answer to the United States
With this motto, Nicolas Maduro intends to circumvent the sanctions imposed by the United States, which have degraded the economic situation of the country, with an abysmal debt. Washington believes that the political leader is none other than a dictator, and has cut the funding granted to him by blocking access to foreign currency.

Residents are facing a food shortage, the collapse of the traditional currency and hyperinflation, which the International Monetary Fund (IMF) forecasts are expected to reach 13,000% in 2018. The unemployment rate is expected to rise to 32% by 2022.

A failure ?
Observers welcomed the announcement of this new crypto-currency with almost universal skepticism. Venezuela is far from being a model of transparency and confidence in economic and financial terms. The initial petro emission is based on oil produced in the east of the country, but the crude in question would not be pumped yet and it should be extracted through joint ventures in which the Maduro government holds only one oil. 60% participation, according to experts.

Meanwhile, Venezuelans are being called to the polls on April 22 to elect their future president. If Nicolas Maduro is not reappointed, the currency will probably become illegitimate.
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