Venezuela to Offer Petro Crypto as Oil Unit of Account at Upcoming OPEC in 2019
Petro is the state-backed currency of Venezuela, but they want to expand its use to be applied to oil as well. They are planning to present their option as a “digital currency of oil” at the Organization of the Petroleum Exporting Countries (OPEC) next year, according to a twitter post from PDVSA. The translated tweet reads, “Minister @MQuevedoF: “Petro will be taking it to OPEC in 2019, as the main oil-backed digital currency.”
Based on information from the PDVSA, president Manuel Quevedo also said that it would end up being used as a unit of account in the trading of crude oil around the world. It would mean that any oil in Venezuela would be traded with Petro. Quevedo believes that this effort with integration would support the economy and improve the growth of the country and has noted that there are invitations to airlines and shipping companies to also obtain a digital wallet. According to a Chinese news agency called Xinhuanet, he also said,
“The gasoline for planes, ships, we will be selling it in Petros. It is the currency of Venezuela.”
There are 15 separate nations that make up the OPEC, which has been functioning since 1960. It was originally established in Baghdad with the purpose of establishing regulations and policies in the oil industry for exporters. So far, there’s no agenda planned for 2019, though there will be a meeting in Vienna Austria on December 9th.
Venezuela only recently made it possible to purchase Petro towards the end up October, even though it was announced as a national coin nearly a year ago. Though it was illegal at the time, the token entered a pre-sale in February. At this point, consumers in the area have the option of purchasing the Petro token from the official website or from one of the six crypto exchanges that the government has authorized to sell it. When the sale began on the 29th, the government notified residents that they would be forced to use the token to acquire a passport.
Unfortunately, Google decided to suspend the crypto wallets that have the option to trade the token at the end of October as well. None of these bans have stopped the government from promoting their crypto asset. In fact, there was an appeal initiated last month to ask citizens to get involved with gold and Petro for their currency, right around the same time that the sovereign bolivar is dealing with impending inflation.
The president wants to make the currency crucial for the functioning of the economy, noting that the goal is to integrate it into salaries and pricing systems as well. Local journalists seem to be skeptical about Petro, considering that it presently isn’t being mined in the country and it has no backing by oil. Unnamed experts reported to Wired that the bank that supports Petro actually has a $45 billion debt, suggesting that the token is no more than a “smoke curtain” over the failure to revive the national currency.