The Venezuelan president announced the launch of a cryptocurrency backed by oil

nStorming comment: Venezuelan President Nicolas Maduro announced recently that it will launch a crypto-currency called “Petro” backed by a reserve of oil and other commodities in the hope of resolving the domestic economic and social crisis in this way and breaking the financial blockade “, For their own development to find a way out. However, this idea has not been understood and supported by everyone. Therefore, it remains to be seen how the plan will proceed in the future.n
nTranslation: Inan
As Venezuela’s economic crisis worsens and its currency, Bolivar, plunges in value, its president, Nicolas Maduro, announces the launch of a new cryptocurrency, “Petro.”n
According to Reuters, Maduro announced the news on a Christmas special television program, stating that such cryptocurrencies waiting to be launched will be backed by commodity reserves, including oil.n
According to a statement released by Venezuela’s official website, Maduro, who came to power in 2013 and witnessed a worsening socio-economic crisis, said that cryptocurrencies will help Venezuela overcome the financial “blockade.”n
The statement wrote:n
n”Venezuela will create a cryptocurrency to strengthen monetary sovereignty, which will help overcome the financial blockade and allow for a new form of international financing for the country’s economic and social development.”n
nIt is reported that the opposition leaders in Venezuela do not agree with this idea. Reuters quoted lawmaker Angel Alvarado as saying he had “no credibility” at all.n
Alvarado told Reuters: “Maduro will therefore become a clown.”n
According to Business Insider, a few weeks before this message came, the Venezuelan government issued a new Bolivarian banknote worth 100,000, and the value of Bolivar plummeted. As the New York Times reported on December 3, rapid inflation in Bolivar led to soaring consumer prices and exacerbated the crisis there.n
In view of the move by some Venezuelans to bitcoin mining in order to make money in times of economic crisis, the announcement of the launch of crypto-petro is also a notable development.n
The Atlantic Monthly pointed out in September that lower electricity costs have made mining a very attractive activity in Venezuela.n
From the point of view of the statement, the Venezuelan government also plans to establish a “blockchain observatory” under the Ministry of Education.n

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