Venezuelan Pres. Maduro Cuts Petro Cryptocurrency Oil Barrel Backing By 99.4%

    Without providing details on how the backing actually works, President Maduro said that the 30 million barrels are ready for commercialization. A hard fall from his earlier statements of 5 billion barrels.

    Nicaolás Maduro, the President of Venezuela, announced that they will be using 30 million barrels of oil to back its Petro cryptocurrency. This is according to a recent statement made by Maduro during a speech given through state television.

    Petro Cryptocurrency To Be Backed By Oil Barrels

    Back in 2018, Maduro announced the creation of the Petro cryptocurrency in order to avoid international sanctions imposed by the United States and other governments.

    It was said that the digital asset would be backed by 5 billion oil barrels, gold and other precious metals that can be found in Venezuela. However, things turned out to be different. They will now be using 30 million barrels to back the Petro and its value.

    The government is promoting the use of this virtual currency in the economy considering they are not able to deal with inflation and they have proposed to fully dollarize the economy.

    Venezuela is a country that was affected by a massive economic, political and social crisis. The socialist dictatorship running the country destroyed wealth and promoted one of the largest exodus of people in the XXIst century.

    The government has been pushing for a larger adoption of the Petro cryptocurrency. There are several retailers around the country already accepting this virtual currency as a means of payment.

    At the same time, other virtual currencies were able to expand in the country as well. Bitcoin (BTC) and Dash payments were mainly used to pay for goods and services when inflation was peaking.

    However, these two aforementioned cryptocurrencies are decentralized and not controlled by the government.

    The Petro is one of the first national cryptocurrencies launched in the world despite the intention of several countries to analyze the effects Central Bank Digital Currencies (CBDCs) could have on the economy.

    Venezuela has already proposed some countries to make payments in crypto for goods such as medicines or food but there was not positive feedback.

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    Carl T
    Carl T
    Carl is a legend in cryptocurrency space for his long-storied experience, history and insights. He is a digital nomad who fell in love with bitcoin and its offspring for many years now and prides himself on delivering quality perspectives in the emerging world of crypto-assets and blockchain technology.

    [Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

    [Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


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