Cryptovest (Ukraine) – Venezuelan President Nicolas Maduro has formally unveiled a decree detailing the launch of the countrys 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 countrys 5.3 billion barrels of oil reserve, or equivalent to nearly $267 billion.
Cryptocurrency To Save Ailing Venezuelan Economy
Maduro first announced his plans to launch the countrys national cryptocurrency in early December in his bid to save the nations crippled economy.
The sharp drop in oil prices in recent years has left Venezuelas economy in shambles. Further aggravating Venezuelas 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 Venezuelas 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