A “pre-sale” of Venezuela’s new ‘petro’ cryptocurrency will begin on February 20, President Nicolas Maduro said on Tuesday, a move that the government hopes will help pull the country out of a dire economic crisis.
Maduro has previously said that the government will issue 100 million tokens, each valued at - and backed by - the equivalent of one barrel of Venezuelan crude. That would put the value of the entire petro issuance at just over US$ 6 billion.
“All the cryptocurrencies of the world have been revalued after Venezuela’s announcements about the creation of the petro,” said Maduro in a speech broadcast on state television.
The OPEC nation is seeking to raise hard currency amid a crippling crisis.
Venezuela’s government has said that the petro issue will help the cash-strapped country make financial transactions and overcome U.S. sanctions against Maduro’s populist government.
Critics have slammed the move as not only illegal but a simple debt issuance for a government overseeing quadruple-digit inflation and major shortages.
Top Comments
Disclaimer & comment rulesThe International Monetary Fund (IMF) projects 2018 the year Venezuela reaches 13,000% inflation. Half of its economy has vanished as it approaches a third annual double digit contraction. This ruse will result in an additional disaster for Maduro.
Feb 01st, 2018 - 12:45 am 0I feel so sad for the people there.
It will become known as ”craptocurrency'.....only as good as the crap that backs it.
Feb 01st, 2018 - 07:17 pm 0Commenting for this story is now closed.
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