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In a surprising twist, Venezuela is closing the chapter on its ambitious Petro cryptocurrency, introduced six years ago by President Nicolas Maduro as a workaround to U.S. sanctions. Despite the initial fanfare surrounding its launch in February 2018, backed by the country's substantial petrol reserves and priced at $60 per unit, the Petro never gained the traction it aimed for.
Facing economic sanctions from Washington, Maduro championed the Petro as a means to secure new forms of international financing. However, confusion among citizens about its usage and skepticism from risk rating bodies branding it a "scam" hindered its progress. Even attempts to revive its utility, such as compelling airlines and state services to accept Petro, failed to propel its adoption beyond limited state operations.
The Petro's demise was marked by a corruption scandal in 2023, exposing irregularities in managing funds from oil operations involving crypto assets. The fallout resulted in the resignation of petroleum minister Tareck El Aissami and the detention of numerous officials, including top management of the Sunacrip crypto regulator.
The crackdown extended to bitcoin mining operations, a popular hedge against hyperinflation and bolivar deflation. Meanwhile, the Patria Platform, primarily used for government subsidies, saw the closing of all crypto wallets trading Petro, converting any remaining tokens to the local currency, bolivars.
As CryptoLand Venezuela declared, 'The petro (PTR) is officially dead.' With the Petro's journey from grand aspirations to a quiet exit, the Venezuelan crypto landscape undergoes a significant transformation, leaving behind lessons and controversies for the global cryptocurrency community.