Venezuela prepares to issue the ‘Petro’ cryptocurrency; Critics call it an act of desperation

Feb 5, 2018 | 0 comments

A pre-sale of Venezuela’s new ‘petro’ cryptocurrency will begin on February 20, President Nicolas Maduro says, a move that the government hopes will help pull the country out of a dire economic crisis.

Venezuela rolls out its cryptocurrency, the Petro, on February 20.

Caracas on Wednesday set El Petro’s initial value at $60, but its price will fluctuate based on the oil market, authorities said.

The Latin American country – which has the world’s largest proven oil reserves but is facing a crippling economic crisis – said a pre-sale for 38.4 million “Petro” units out of a total 100 million would take place between February 20 and March 19.

Maduro has previously said that the government will issue 100 million tokens, each valued at – and backed by – the equivalent of one barrel of Venezuelan crude. That would put the value of the entire petro issuance at just over US$ 6 billion.

“All the cryptocurrencies of the world have been revalued after Venezuela’s announcements about the creation of the petro,” said Maduro in a speech broadcast on state television.

The OPEC nation is seeking to raise hard currency amid a crippling crisis.

Venezuela’s government has said that the petro issue will help the cash-strapped country make financial transactions and overcome U.S. sanctions against Maduro’s populist government.

Critics have slammed the move as not only illegal but a simple debt issuance for a government overseeing quadruple-digit inflation and major shortages.

Venezuela is mired in a deep economic crisis triggered mainly by a fall in crude oil prices and a drop in oil production, which accounts for about 96 percent of the country’s exports. It is struggling to restructure its external debt, estimated at around $150 billion by some experts.

CuencaHighLife

Dani News

Google ad

Quinta Maria News

Amazon Eco lodge News

Fund Grace News

Gran Colombia Suites News

Thai Lotus News

Google ad

The Cuenca Dispatch

Week of April 07

Ecuadorian coffee production is in decline and now supplies only 50% of national consumption.

Read more

Evaluating the Impact of Ecuador-Mexico Diplomatic Strain on Trade Relations.

Read more

The contribution of hydroelectric plants is declining, and Colombia is reducing electricity sales to Ecuador.

Read more

Hogar Esperanza News