Cryptocurrency News

Venezuelan Government will use Ethereum Blockchains to sell “Petro”

A couple of months ago, the Venezuelan government made an announcement that surprised a lot of people in the world. They had decided to launch their own cryptocurrency called “Petro”. This currency was created with the objective of circumventing the “financial blockade” settled by the United States back in 2016.

Petro is the name of the new cryptocurrency that will be backed up with the country’s gold, gas, oil, and diamond reserves. At the same, Nicolas Maduro, leader of Venezuela, aims to generate solidity in the economy by obtaining a new form of international financing as his country is ravaged by high levels of inflation.

On Tuesday, January 30, 2018, the Government of Nicolas Maduro presented a White Paper that was created by a group of national and global experts and where they showed all the details, conditions of creation, operation and support that will have this new and promising crypto currency.

Something that surprised the users and investors of virtual currencies is that the Venezuelan government reported that the Petro is a digital coin with ERC20 features. In other words, this means that it is a kind of token that operates as an intelligent contract over the Blockchain of Ethereum, one of the most popular crypto currencies in the world today.

Petro will work based on a set of codes or functions with an associated database. Maduro confirmed that user will be able to exchange and buy Petro in a safe and direct way to avoid blockades and sequestrations.

The government will also seek to avoid the high costs that companies and banks charge for making transactions. Another of the announcements that came by the leader is that Petro will be freely available in most electronic exchange houses around the world.

During the White Paper presentation, the Venezuelan leader said the following:

“Venezuela has taken the necessary steps to comply with the protocol needed for the creation of the crypto currency. I want to accelerate the entire release of Petro, as I believe this is the future for us.”

The Venezuelan government also reported that they are going to accept PETRO as a form of payment of taxes, fees, contributions and national public services, this always taking as reference the price of the Venezuelan oil barrel of the previous day with a discount.

It was said that, in this way, users will have guaranteed that they will always have a recovery value adjusted to their investment.

To use, transfer and buy Petros, users must open an account in a wallet. To change Petros for some other crypto currency, users will only need to contact any of the Exchange sites previously authorized by the Venezuelan government.

Despite the promising future that is seen for the Venezuelan people with the release of Petro, several opposition groups of the government, critics of the President and experts on cryptocurrencies’s issues have indicated and predicted that the emission of Petro is something illegal and Unconstitutional in considering that it is a mere issuance of debt at a time when the South American nation is going through a severe economic crisis.

They have also indicated that the launch of Petro is not the fastest solution for the situation in which thousands of Venezuelan families live in the country. They have been affected by a four-digit inflation and serious problems of food shortages and medicines.

To finish off, we have to mention that the Venezuelan leader also reported that for those interested in acquiring this new crypto coin, the pre-sale will begin on February 20 and the initial offering of the new Petro will begin on March 29.

The Venezuelan government will emit approximately 100 million of Petro and the estimated value of this digital currency would be the price of an oil barrel.

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