Venezuela’s President Invites OPEC Countries To Jointly Develop Oil-Backed Crypto Platform

News | February 8, 2018 By:

Venezuela’s president Nicolas Maduro has invited members of the Organization of the Petroleum Exporting Countries (OPEC) to jointly develop a platform to trade oil-backed cryptocurrencies.

After meeting with OPEC Secretary General Mohammed Barkindo, Maduro told reporters that he will make an official proposal to all OPEC members and non-OPEC states to work out a joint cryptocurrency mechanism backed by oil.

OPEC consists of 14 nations: Algeria, Angola, Ecuador, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates, and Venezuela.

The Venezuelan president also said that the regime of oil production cuts, which operates within the deal between the members and non-members of OPEC, must remain in place for at least five more years.

“I want the Joint OPEC-Non-OPEC Monitoring Committee to operate for at least five more years as we have already had great achievements,” Maduro said.

Venezuela is already in advanced stages of launching its own oil-backed cryptocurrency, the Petro, whose public initial coin offering (ICO) will be held in March. First announced in December, the purpose of the Petro was “to advance the country’s monetary sovereignty, to carry out financial transactions and to overcome the financial blockade against the country.”

Maduro said that in addition to 5 billion barrels of oil support, the Petro will also be backed with precious minerals from the country.

“I have explained to Mohammed Barkindo the goodness of the Petro,” said Maduro. “The cryptocurrency is the world of the future. I am very excited as well as the people of Venezuela.”

Last month, Venezuela’s opposition-run congress, the Asemblea Nacional, declared that the Petro is illegal. Legislators claimed that any issue of the cryptocurrency would violate constitutional requirements that mandates the legislature approve any borrowing against Venezuela’s oil wealth.

The US has warned that buying the cryptocurrency could violate sanctions against Venezuela, which prohibits the purchase of newly issued Venezuelan debt.