Venezuela Launches Its Own Oil-Based Cryptocurrency "Petro"

The Minister of Communications of Venezuela, Jorge Rodriguez, voiced the desire of the country's authorities to launch a new type of cryptocurrency from day to day. It will be called "petro" and will be provided with natural resources, primarily crude oil. The "bank" will be the Ayacucho oil-producing region, where 5.342 billion barrels of certified oil are concentrated.

Venezuela is also ready to support its cryptocurrency with gas, gold and diamonds, but on a very modest, cautious scale. At the first stage, petro will go into circulation in the equivalent of 5.3 billion barrels, whose collateral in monetary terms will amount to $ 267 billion. According to Rodriguez, the miners have already "lined up", but does not provide any details.

A cryptocurrency backed by real assets, unlike purely virtual bitcoin and its counterparts, can become an unexpectedly attractive tool for financiers and investors. The world is tired of the dominance of petrodollars and conflicting prices for strategic resources, plus large players are also afraid of inflating new speculative bubbles. Venezuela, on the other hand, offers a kind of middle ground - a transaction-friendly cryptocurrency that has tangible value in the form of billions of barrels of oil.

Analysts note that the risks of such a step are also great, but the Maduro government is just in a situation where such adventures are extremely appropriate. The country is struggling to get out of a severe financial crisis, while Russia, China and the United States are systematically seizing its oil sector. Slowing down this process, attracting numerous private investments to petro and retaining control over natural resources - this is the task that the authors of the new cryptocurrency set themselves.