After finding his country on the verge of financial collapse, President Nicolas Maduro decided to take advantage of the cryptographic revolution. And now, after several attempts, the country is finally launching its own digital currency, which Maduro has dubbed the “Petro”
The new cryptocurrency has hit Venezuelans by surprise… And the Trump administration right in the heart.
The strategic objective of the new currency is to circumvent the imposed financial embargo by United States.
Moreover, the new currency is meant to fight against the depreciation of the Venezuelan Bolivar.
Venezuela Following Crypto Trends
The country’s financial crisis is exactly what gave it the ambition to join the world of cryptocurrency. President Maduro had announced in December of 2017 that he wanted to create a digital currency called the Petro.
Now, this has been confirmed on a national radio announcement with a statute that was made up of 13 parts. The statements include several lines that concerned the Petro. Article 4 of the decree described the different resources that would be used to support the new currency. Article 9, also, explained that once the currency is launched, the technology would be completely decentralized. The specific goal of the decision was meant to address both the country’s economic and social problems.
Making Do With What We Have
Venezuela, being a country rich in oil, is the resource that the President has based the creation of the Petro off. He states that he would based the currency off 5.3 billion barrels of oil, which is equal to about $267 billion. He explains that 1 Petro would be supported by 1 barrel of crude oil. And that it will all be supported by the Ayacucho oil deposits.
For his concept to succeed, he sought the expertise of a special team, set up to work in the analysis and supervision of the new currency. The team would also work to integrate mining into the equation.
A Little Bit of Gold and a Little Bit of Diamond
Since the country’s own currency, the Bolivar, has depreciated by about 90% since last year, the President is not just content to highlight oil in his quest. He also wants to allocate the Arco Minero gold deposits from the Orinoco mineral belt, as well as the country’s diamond deposits.
Venezuela is now just awaiting the launch of its Petro. It is expected that the Petro will launch before Estonia’s new currency, the “Estcoin”. It is hoped that the Petro will mark the country’s entry into a new age of prosperity.