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Venezuela launches cryptocurrency, hoping to resuscitate economy

Venezuela launches cryptocurrency, hoping to resuscitate economy

Venezuela’s efforts to launch the cryptocurrency have crowned by success, Nicolas Maduro administration hopes that sales of digital petro will help to resuscitate the economy. The deepest crisis has driven hundreds of thousands of Venezuelans to flee the country seeking a better life.

Petro, a freshly-launched digital currency, should help Venezuela’s treasury pay off debt and increase imports of vitally needed goods, as well as raw materials for manufacturing. According to President Maduro, petro will be backed by the oil resources of the country, aims to begin a new economic era in the nation.

The manual of acquisition and commercialization of the Petro will be available and will begin the pre-sale of this digital currency with 82.4 million units available.

“The Petro is born and we are going to have a total success for the welfare of Venezuela,”

said Nicolas Maduro.

The government has said the value of the petro will be tied in some way to the value of a barrel of Venezuelan oil. But the Maduro administration has not given many details on how this pricing would work, and many investors have said they would not trust the government to faithfully maintain the link between the petro and the price of oil.

“The petro will most likely suffer all of the same ills as Venezuelan debt,”

predicted David Smilde, a sociology professor at Tulane University who has researched Venezuela for more than two decades.”

Petro about

The Venezuelan Government has officially announced the pre-sale of the Petro (PTR) cryptocurrency – the first commodity-secured currency of its kind in the world.  The petro white paper said the process would begin with a presale of digital tokens, to gauge demand, and then be followed by an “Initial Coin Offer,” with 82.4 million petros released to the public. The petros are then supposed to be tradable on virtual currency exchanges around the world, the white paper says.

It is worth to note that the spokesman for the United States Treasury Department warned American investors last month that the petro might still run afoul of the sanctions, telling Reuters that the currency “would appear to be an extension of credit to the Venezuelan government” and could “expose U.S. persons to legal risk.