Venezuela is forced to create a cryptocurrency backed by oil

The concept has not yet been assimilated by many Venezuelans who wonder what this new ad consists of: How can a petro be acquired? What does it work for? Why a virtual currency? Doubts that last, days of its creation, on December 3 by the national Government of the Republic of Venezuela.

The crypto ecosystem until now has been represented mainly by the bitcoin, one of the most popular cryptocurrency and whose price came to touch the $ 20,000. Therefore, the Petro is an official mechanism within a system of unregulated currencies that already work to pay in several cities of the planet; they are even used as a store of value.

"This cryptocurrency is to carry out financial transactions and seek new forms of financing. The Petro is going to call. With this we are incorporated into the world of the 21st century, "announced the Head of State, Nicolás Maduro.

This cryptocurrency is backed with oil. The proposal included the declaration of Field 1 of the Ayacucho Block of the Orinoco Oil Belt as a sustenance for the cryptocurrency, equivalent to 5,342 million barrels of crude oil (267 billion dollars). Besides, the foundation of the Venezuelan Blockchain Observatory and the activation of virtual change houses.

Real value of a Petro

The President, Nicolás Maduro, informed that the cryptocurrency Petro will have a quotation equivalent to that of the barrel of oil.

"For every Petro, a barrel of oil, that is the value," explained the National Executive.

In this regard, said that this virtual currency will be supported by one of the active fields in the Orinoco Oil Belt, whose wells have about 5 billion barrels of oil certified internationally.

What are the advantages of Petro over other cryptocurrencies?

The price of Petro will be related to the international price of gold, gas, oil and diamonds.

This is the first time that a country decides to issue a digital asset backed by real-world resources.

The expectation is very high because having a State behind, there will be large amounts of raw materials guaranteeing the issue of the currency, which implies that the scale and volume of transactions that the market can take is unlimited.

Is Venezuela going to get more financing in the world?
The Petro has every opportunity to put the digital currency market at its feet.

The Venezuelan digital currency will allow this community to acquire raw materials (real assets) without leaving the digital world.

	Washington previously barred citizens and companies from negotiating debts issued to the Maduro government and the state oil company PDVSA.

Does Petro help to break the blockade and the sanctions of the United States?

The cryptocurrency, like the rest of the digital assets, will work based on blockchain technology.

In the world of cryptocurrencies a transaction processor like the Swift is not necessary.

therefore, there are no possibilities for powerful countries to change the rules of the game.

The Petro, therefore, will allow Venezuelans to carry out financial operations with other countries and even among the inhabitants themselves, without having the controls or warnings of the United States, which can not impose its rules. To cancel the blockchain countries should disconnect internet in the world, an impossible.