Venezuela Publishes Details About Cryptocurrency Petro

in cryptocurrency •  7 years ago  (edited)

The government of Venezuela has issued a decree under which conditions the state-owned crypto currency Petro is to be introduced. Five billion barrels of crude oil are intended to secure the value of the new state cryptocurrency. The country has been in a severe economic and supply crisis for years.

Venezuelan President Nicolás Maduro has committed five billion barrels of crude oil, valued at $ 267 billion, to set the value of the new cryptocurrency. As we already reported, Maduro already announced Petro in early December. The backgrounds are political. The introduction should help to avoid the blockade policy of the USA and the EU. In the future, the state wants to have supplies of raw materials paid for elsewhere.

As part of a recent national radio and television program, Maduro presented a document stating that every single Petro should be supported by a barrel of crude oil. In addition, gold from the north of the country is to be deposited as collateral. The decree also mentions deposited gas, diamonds and other mineral resources. Word of mouth Maduro said:

"We will put together a team of cryptographic specialists to facilitate mining in all regions and communities in our country."

More details about the petro will be announced later this month. Immediately thereafter, according to the plans of the government, the issue should begin. The government is under time pressure. The country's population is in a difficult position due to extremely high inflation. At the turn of the year, the minimum wage and pensions were raised for the sixth time, again promising only a short-term reduction in conditions.


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Buying at ICO can bring big rewards before it crashes.

Buying at ICO can bring big rewards before it crashes.

Do you trust a crypto currency back 100% by a government?
As usual, it will be only in their interest at the end

Hi, in my opinion it is an interesting project. Because we can see what might go wrong with a crypto backed by a government, but on the other side we could also see the potential which a crypto could have on a fully accepted and integrated level.

It could indeed.
But they will always have in target their own interest and profit unfortunately.
I agree it could be great to see blockchain in application for a real-case backed-government

Hang on,
I get how bitcoin can be said to be backed by the cost of the electricity it costs to mine it.
I could also understand how a gold IOU could represent some certain amount of gold if and only if any IOU holder could claim their gold from the bank's vault at any time.

I do NOT understand what mechanisms ties a slew of oil barrels to a cryptocurrency.

Does it mean that if I own a certain amount of Petros I could claim my two oil barrels and my 1/100 grams of a diamond?
What is the link between the coin and the goods that are supposedly backing it?
Besides Maduro saying so, I mean.

Agree

Not so, those who are in the Government of Venezuela are very ignorant and their greatest strength steal everything they can, My opinion they only want to seek an individual benefit, after the US government imposed sanctions individually. It would be great if it works if all the people of Venezuela win.

IMO, a cryptocurrency that is established by a bank is the complete opposite of what crypto is all about. Decentralization and deregulation are key concepts that make things like Bitcoin and Ethereum as popular as they are.
Many people on Twitter already screaming about Ripple being bank involved (despite the continued interest) solely because they do not want something controlled by the government.

All of what you say is correct. But it is better for public blockchains used for money transmission (such as the Bitcoin network, for example) if there exist crypto fiat. That way, you can easily exchange crypto for fiat in a decentralized manner using atomic swaps, for example.

I don't think that's what this will turn out to be.
You can bet all citizens using their Petros will have their financial movements exposed to the govt, but I'm preety sure that government officials will have their holdings in some other currency (or cryptocurrency).

This could be just a way to trash the current worthless coin and eliminate untraceable cash from the citizen's economy.

I totally agree in that Petro is bad for the users in some important ways, namely by being totally controlled by the government who has the power to financially execute any user of Petro at the flick of a switch. But how is that different from the government's power to freeze any bank account?

I agree that many are against ripple because of the banks, but it's still a good investment.

Petro?? Is it launched ?? Can we invest to it?? I think Venezuela will soon be establish if it happen so...

I think very soon.

Thanks for the information bro
I really like your blogs
They are filled with useful information

This is really a cool information brother you shared
this time i didnt share my thoughts on your blog but i really impressed from your news :)

Thank you!

Welcome my friend

Who could have thought that Venezuela would become one of the first countries whose policy would be based on the crypto currency? We live in a wonderful time. Good luck to you.

Кто мог подумать, что Венесуэла станет одной из первых стран, политика которой будет базироваться на криптовалюте? Мы живем в прекрасное время. Удачи Вам.

Agree. Thank you

Pointless exercise whole reason to use cryptocurrencies is that they are decentralized.

cryptocurrency is the changing of life...i love and like cryptocurrency......thnx for share post about cryptocurrency....

Thanks for sharing this

I'll say the project is a big one... Only if the government won't convert it into theirs

Believe me this is just a way for the government to skip the restrictions and sanctions of the US government, I am from Venezuela and this is one of the most corrupt and liars governments I have ever known, and everything that this government is sticking hand is destined to fail

I live in Venezuela, I'm a professor of State Accounting at the Universidad de Oriente (UDO), I can say with certainty that the organized group of government delinquents use this new Cryptocurrency Petro to be able to wash all the dollars that are currently stolen.