Venezuela launches Ethereum-based cryptocurrency called Petro
Venezuelan President Nicolas Maduro announced that the Petro cryptocurrency created by him and his team will soon be introduced into circulation as a unit of account within the country..
Maduro announced his decision on television. The state oil company PDVSA will be the first to test the possibilities of the oil-backed cryptocurrency (it will use Petro as the unit of calculation). In addition, the government is determined to introduce a new payroll system, as well as the pricing of goods and services linked to Petro..
Excerpt from the President’s Address: «As early as next Monday, Venezuela will be able to start using Petro. The coin will be released into circulation within the country and will begin its journey as a compulsory unit of calculation for our oil industry, represented by PDVSA».
According to Maduro, the introduction of a new wage and pricing system based on a coin tied to the country’s oil reserves will create conditions for a significant improvement in labor incomes..
Starting August 20, Venezuela will use two national currencies — Petro and Sovereign Bolivar, the latter of which will be indexed to the former. The sovereign bolivar will take five zeros from the current national currency. The Central Bank (CBK) will begin publishing official data on the value of the sovereign bolivar in accordance with Petro and the value of Petro in accordance with international currencies. Maduro also said that private banks in the country have already received new banknotes..
As a reminder, the Venezuelan government launched the Petro pre-sale in February 2018. The country has initiated work on its own cryptocurrency in an attempt to attract foreign investors and at the same time bypass US and EU sanctions. The new cryptocurrency should also solve the problem of overcoming catastrophic hyperinflation. Inflation is projected to reach 1,000,000% in 2018 alone.
Based White paper, the cryptocurrency is fully compliant with Venezuelan law, although the opposition in the National Assembly has publicly stated that the issue of Petro was illegal.
It should be noted that the document lacks details of the technical implementation of the project. Also, the hype around the sale process itself still does not subside. — Maduro several times «caught» on the inconsistency of data on the funds raised.
Earlier, we took a closer look at El Petro and the possibilities of cryptocurrency..
text: Evgeniya Likhodey, photo: commons.wikimedia