CARACAS (World Breaking News) – Venezuelan President Nicolás Maduro announced on Friday that his government will issue 100 million of the cryptocurrency called “petro”, which will be backed by oil.
Maduro added that the “petro” will have a “value equal to the price of the oil barrel on the Venezuelan market.” The issuance of the aforementioned amount will be done by virtual exchange houses that are currently in a trial testing period.
At the end of last month, the president said that the “petro” would have support of the Ayacucho Block of the Orinoco Belt, which he said has proven reserves of more than 5 billion barrels of oil.
The governor said that in the course of this year is expected to add the riches of gold and diamonds to back the cryptocurrency.
The authorities convened for January 14 the first national meeting of miners where the “petro” will be formally presented.
On the other hand, Maduro said that next week they will be reactivating the System of Exchange Rate known as Dicom.
The launch of the cryptocurrency comes about in a deep crisis that Venezuela faces with a galloping inflation, a severe shortage of food and medicines, and an economic recession.
Given the sharp depreciation suffered by the Venezuelan currency and the limitations faced by the population to obtain foreign exchange due to exchange controls, the announcement of the cryptocurrency has generated positive expectation among locals.
In August, the United States imposed severe financial sanctions on Venezuela by prohibiting Americans from extending credit to the South American country or exchanging bonds with the government and state corporation Petroleos de Venezuela SA (PDVSA).