Bitcoin, Cryptocurrency And Blockchain News

President Maduro: Venezuela’s Oil-Backed Cryptocurrency Will Be Traded With Fiat Currency


It’s only been a month since Venezuela’s President moved to launch the Petro Coin despite resistance from the country’s legislature over the idea of a national cryptocurrency backed by the oil reserves in the country.

Furthermore, the US government sparked a war of words with the Venezuelans after President Donald Trump banned the use of Petro in a White House Statement that said “All transactions related to, provision of financing for, and other dealings in, by a United States person or within the United States, any digital currency, digital coin, or digital token, are banned.”

A senior administration official reportedly also mentioned that the Petro is nothing but a desperate move by a corrupt government to “defraud international investors”. He further mentioned that the coin supports a dictatorship and undermines Venezuela’s democracy.

Petro to Be Purchased Directly With Fiat Currencies

However, despite the bad press that Venezuela’s Petro has received both internally and externally, President Nicolas Maduro is not backing down with his plans, considering his recent announcement that will see the oil-backed cryptocurrency exchanged with fiat money.

According to the Venezuelan President, the Petro will now be exchanged with “Yuan, Rubles, Turkish Lira and the Euro starting on March 23rd.

He also mentioned that the above fiat currencies are “the most important currencies for the economic future of the planet”

Maduro also said that the country’s energy giants like PDSVA, which are renowned in the export industry, will have an opportunity to receive ‘el Petro’ in exchange for their exports. He added that PDSVA, as well as other entities that have previously only traded with foreign currencies, will now be able to use cryptocurrency and supply products globally “to all countries and enterprises in the world”

Four Exclusive Economic Zones Introduced

If reports are anything to go by, the use of the Petro coin with other fiat currencies is not the only announcement from President Maduro. He also announced the launch of four “exclusive economic zones” in Venezuela that are set to provide a conducive environment for the use of the Petro in payment for goods and services.

Seemingly, the Petro coin is aimed at breaking through the US financial blockade. In fact, the US has warned investors over the risks involved with the new cryptocurrency.

Although Trump has called Petro a scam, President Maduro has raised about $735 million in the pre-sale of the coin and plans to launch the Petro Oro token soon.

What do you think the future of the Petro will be? Share your thoughts and opinions with us in the comments section.