Venezuela’s New Cryptocurrency Will be Held to an “Oil Standard”

By Owen Heimsoth | VENEZUELA

Earlier this month, President of Venezuela Nicolas Maduro announced his plans to launch a nationwide cryptocurrency called the “Petro” in a televised Christmas stream to the country.

Venezuela is another company crippled by socialism. Their citizens are starving. Their currency is one of the most inflated in the world. The average Venezuelan lost 19 pounds last year through their lack of food.

It is worth noting that about 44% of citizens are on the internet in Venezuela. They are known to have some of the slowest internet speeds in the world. This is due to their extremely poor infrastructure.

Maduro is saying that the creation of this cryptocurrency will be to circumvent financial sanctions.

Maduro said the Petro would help his country “advance in issues of monetary sovereignty, to make financial transactions and overcome the financial blockade.”

Many leaders, including economist Angel Alvarado, have had their criticisms of this coin. Alvarado said, “It’s Maduro being a clown. This has no credibility.”

The Venezuelan President said that his coin is also to help fight in what he has called a financial “World War” that the US is waging upon him.

He has also promised that gold and diamonds will also be used as backing for the new cryptocurrency. He has made it known that one unit of the coin will be backed up by one barrel of oil. The price of one barrel of oil sits around $66 at the time of writing.

5.3 billion barrels of oil is actually not much for Venezuela. They are recognized to have the largest oil supply in the world at 297 billion barrels of oil. This number was from 2010 so it could be higher. It is still assumed that they still have the largest reserves.