Cryptocurrency Backed By Oil To Be Created By Venezuela

Announcements, News | December 4, 2017 By:

Venezuelan president Nicolas Maduro has announced that the country is creating a cryptocurrency that will be backed by Venezuelan reserves of gold, oil, gas, and diamonds. The Venezuelan president made the announcement during his weekly television program, broadcast on the state channel VTV.

Maduro said the proposed cryptocurrency, called “petro,” will help combat the US’ “blockade” against the country. It will enable Venezuela to advance in monetary sovereignty and carry out its financial transactions to overcome the financial blockade.

“This will allow us to advance toward new forms of international financing for the country’s social and economic development,” said Maduro

Opposition leaders in Venezuela said that the new cryptocurrency needed congressional approval, and some cast doubt on whether the it would ever see the light of day in the country.

“It’s Maduro being a clown. This has no credibility,” said opposition lawmaker and economist Angel Alvarado.

The country’s currency, the Bolivar, has been rendered basically worthless by the country almost running out of cash. The currency has lost 96% of its value this year. As of Tuesday, it took 103,000 Bolivars to buy a US dollar. At the beginning of this month, a dollar was worth 41,000 Bolivars. And at the start of this year, it only took 3,100 Bolivars to buy a dollar.

Earlier this month, Maduro announced a new 100,000 Bolivar note in an effort to curb out-of-control inflation that has left Venezuela reeling. It is now the nation’s highest-value note.