Reactions to Petro, a Venezuelan Cryptocurrency

Petro, a cryptocurrency initiated by the Maduro government, is to be adopted by Venezuelan banks. Venezuelan President Nicolas Maduro ordered all banks to do so.

At the moment, Venezuela is going through political and economic crisis. Venezuelan Bolivar, the national fiat currency of Venezuela, has lost its value.  It has dropped so low that World of Warcraft (Wow) gold is worth more than Bolivar. Currently, 200,000 Wow gold can be bought against $20 which means almost 10,000 Wow gold for $1. Whereas $1 can be used to buy more than 69,000 Bolivars. Thus, this explains the value lost by Venezuelan national currency. Due to these circumstances, the people of Venezuela are going through squalid conditions.

Nicolas Maduro, after acquring the presidential authority, has seen adverse opposition leading to instability in the politics of Venezuela. He had been serving duties as foreign minister since 2006. He gained the support of former President Hugo Chavez. So, Chavez named Maduro as his successor, the President of Venezuela. But, unfortunately, country’s opposition has been disapproving Maduro as their president. They believe that the constitution was not followed as Diosdado Cabello, the speaker of the National Assembly, was meant to be the president.

As country was seeing inflation at an exponential rate, Maduro decided to launch the cryptocurrency that his government had been working on for a long time. He claims that the cryptocurrency is backed by oil. He tweeted that Petro’s pre-sale capitalized about $735 million.

Maduro’s decision has faced immense opposition due to several decisions. Marialbert Barrios, a National Assembly deputy, dismissed the cryptocurrency because she does not expect large supporters of the cryptocurrency. She curiously asked about the people who will be showing trust on a government’s cryptocurrency when the very same government is not paying its external debt.

In the past, Donald Trump, U.S. president, approved sanctions against Venezuela’s cryptocurrency, Petro. The executive order signed by the U.S. president said:

I, DONALD J. TRUMP, President of the United States of America, in order to take additional steps with respect to the national emergency declared in Executive Order 13692 of March 8, 2015, and relied upon for additional steps taken in Executive Order 13808 of August 24, 2017, and in light of recent actions taken by the Maduro regime to attempt to circumvent U.S. sanctions by issuing a digital currency in a process that Venezuela’s democratically elected National Assembly has denounced as unlawful……All transactions related to, provision of financing for, and other dealings in, by a United States person or within the United States, any digital currency, digital coin, or digital token, that was issued by, for, or on behalf of the Government of Venezuela on or after January 9, 2018, are prohibited as of the effective date of this order.

While Maduro is positive regarding the prospect of Petro, there are mixed views existing among people. Some are just skeptical whereas some have been opposing the cryptocurrency idea.

Fatir Malik

Electrical engineer by profession, turned into blockchain developer. Fatir contributes regularly with his insights about latest developments in fintech sector. Contact the editor at editor.opinions@blockpublisher.com

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