Bitcoin, Cryptocurrency And Blockchain News

President Maduro: Petro Cryptocurrency Pre-sale Generates $5 Billion


In a meeting with members of his party, the United Socialist Party of Venezuela (PSUV), President Maduro announced that Petro has raised more than $5 billion, with over 186,000 certified purchases. The President said that the Petro will significantly strengthen the country’s foreign reserves.

Telsur reports that President Maduro exuded confidence that the continued success of the oil-backed cryptocurrency will help the country overcome the current economic crisis.

The revenue generated through the sale of Petro will be used to service everything our country requires and it forms part of the wider economic solutions that my government has put in place,

-he claimed.

The data released by Carlos Vargas, the country’s Superintendent of cryptocurrency and related activities, indicates that more than 83,000 people in 127 countries have made a certified purchase order for the national cryptocurrency. The pre-sale started on February 20th and will close on March 20th. The President praised the team spearheading the sale of the tokens saying that they will achieve the goal.

Petro as a Powerful Digital Currency

The Petro was launched to counter the US-imposed economic sanctions on the South American country. President Maduro says that the new currency aims at enhancing the country’s sovereignty, making financial transactions easier and cheaper and overcoming the imposed financial blockade.

Telsur reports that in a recent meeting with businessmen, Venezuela’s Vice-president Tareck El Aissami said that the Petro is going to be a powerful international currency that supersedes the dollar. El Aissami explained,

Companies will be able to pay for imports of raw materials with Petros,

The VP has urged financial institutions in the country and abroad to invest in the new virtual coin, arguing that it could be accrued by banks as assets on their balance sheets. Venezuela says that the buying of its oil products in the near future will be done using the Petro.

An extension of Credit to Venezuela

Meanwhile, the US Treasury Department has repeatedly argued that the Petro as a currency comes with characteristics which appear like an extension of credit to the Venezuelan government, which is a move prohibited by the existing US sanctions on the country.

An official from the US Treasury Department said,

Anyone investing or dealing with the prospective Venezuelan digital currency exposes themselves to possible US sanctions,

Recently, Bob Menendez, a US Democrat Senator and his Republican colleague, Marco Rubio, co-authored a letter denouncing the Petro and demanding that the Treasury Department develops tough measures to monitor its growth and development. The two senators also proposed a raft of measures that could be used to suppress the growth and success of the new cryptocurrency.

Despite the tough warnings from the Treasury Department though, The US has the largest number of foreign investors in the Petro.

Do you believe the recent claims by President Maduro? Will the Petro survive the US efforts to undermine its success? Share your views with us in the comments section.