MercoPress. South Atlantic News Agency

Petro, the Venezuelan cryptocurrency is online

The initiative promoted by the government of Nicolás Maduro responds to individual sanctions by the international community against government officials.

The pre-sale of Petro began early on Tuesday, the cryptocurrency proposed by the Venezuelan government in recent weeks and backed by the country's natural resources. According to experts, it is “ridiculous”, arguing that the creation of a new currency would aggravate the economic crisis in the Caribbean country.

The Venezuelan cryptocurrency; an initiative promoted by the government of Nicolás Maduro to, according to the Venezuelan president, “evade the financial blockade”, as a result of individual sanctions against government officials imposed by the international community; went to the private market in search of possible investors on Tuesday.

The private pre-sale will last until March 19 and, in principle, it will be 38.4 million Petros, on an initial issue of 100 million. These 100 million units have a value of 5,9 billion dollars, of which 82,4 million Petros will be divided between private and public sectors and the rest will be reserved by the State while the Blockchain Observatory of Venezuela will regulate its functioning.

It is a cryptocurrency that can not be mined. That is to say, it will not be possible to regenerate. So its value will depend on the oil market and the 5,000 barrels of oil that support it.

The chairman of the Finance Committee and deputy of the Venezuelan parliament, Rafael Guzmán said that “Petro is not a cryptoactive, rather it seems that it is a new currency that violates the constitution, which establishes that the only legal tender is the bolívar” and that because it can not be generated again, “they convert it into a government debt issue that it intends to use as a means of payment”.

“We warn investors that when buying a Petro they are buying an illegal asset that violates the Venezuelan Constitution. We also say to those whom the government wants to force to receive them that they do not let themselves be bent, their debts will be honored at the moment in which a political change takes place” the deputy concluded.

Canadian cryptocurrency advocate Calvin Ayre dismissed Venezuela's initiative: “It's ridiculous. I mean, if you can not manage your own currency in the previous system, are you going to put another currency into circulation in the new system and it will work for you? That is just ridiculous to me. In fact, there is already a solution for your problem, bitcoin cash, just adopt that”, Ayre told Media Observer.

The launch is generated at a time when the country suffers a humanitarian crisis that affects the region and the highest inflation in the world, with a forecast of 13,000% for 2019 by the IMF.

Maduro has thus enhanced a virtual currency that he believes will save the country from the financial pit. “The Petro is born and we are going to have a total success for the welfare of Venezuela,” El País of Spain quotes.

Maduro has thus launched a virtual currency that he believes will save the country from the financial pit. “The Petro is born and we are going to have a total success for the welfare of Venezuela,” El País from Spain quotes.