Maduro Formally Unveils Venezuela’s Oil-Backed Cryptocurrency


Cryptovest (Ukraine) – Venezuelan President Nicolas Maduro has formally unveiled a decree detailing the launch of the country’s cryptocurrency called the El Petro, backed by the nation’s natural reserve, including oil, gold, and diamond.

The reserve has nearly five billions of barrels of oil and Maduro backed the document with an “international certificate”.

Until now, informally, Venezuela used cryptocurrencies such as Bitcoin, Litecoin, and even DogeCoin, to mitigate the effects of hyperinflation:

The Venezuelan government also pledged to provide cryptocurrency mining across the country. Maduro stated:

Gold And Diamond to Back El Petro

In addition to oil, Maduro also directed the allocation of the gold and diamond deposits from the Arco Minero and Orinoco Belt to further boost the value of El Petro.

The Venezuela leader has already activated the Cryptocurrency Superintendency and the National Blockchain Observatory to oversee the creation and operation of El Petro.

Launch of El Petro Imminent

Before the turn of the year, Venezuela’s communications minister hinted the imminent launch of the asset-backed El Petro, which he claimed will peg from the country’s 5.3 billion barrels of oil reserve, or equivalent to nearly $267 billion.

Rodriguez stated:

Cryptocurrency To Save Ailing Venezuelan Economy

Maduro first announced his plans to launch the country’s national cryptocurrency in early December in his bid to save the nation’s crippled economy.

The sharp drop in oil prices in recent years has left Venezuela’s economy in shambles. Further aggravating Venezuela’s woe is the decline in its currency, the Bolivar.

But Maduro has turned to cryptocurrency to keep the economy afloat and “to innovate toward new forms of international finance for the economic and social development of the country.”

Pegging El Petro to Venezuela’s vast natural resources was his way “to advance the country’s monetary sovereignty, to carry out financial transactions and to defeat the financial blockade against the country.”

Fuente: Cryptovest – 03/01/2018

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