Bitcoin, Cryptocurrency And Blockchain News

Venezuela Disowns the Published Petro White Paper, Declares it “Fake Information”


The Venezuelan government has disowned a leaked, alleged Petro whitepaper that was published online, claiming that the information is false. The possibility of having an oil-backed cryptocurrency was announced late last year by the government, claiming that it would allow smoother transactions without necessarily relying on the dollar.

According to the Superintendence of Venezuelan Crypto Assets and Related Activities, any information that has been published with regards to the Petro is utterly false. The statement made by the entity didn’t, however, specify the kind of false information contained in the leaked whitepaper, nor did it point out the media group that published it.

Via some digital media, false information has been published regarding a White Paper on Venezuela’s cryptocurrency, the petro, which we categorically reject,

…the entity stated.

The Superintendence further stated that the real whitepaper on Petro will be made public soon by Nicolas Maduro, the Venezuelan President. It didn’t, however, give details about the exact date that the white paper will be released.

Could the Government Be Referring to a Reddit Post?

It’s likely that the Superintendence was referring to information on a Reddit post that was published about two weeks ago, claiming that Petro will be an ERC-20 token. According to the post, the information was based on the cryptocurrency’s whitepaper, a document that the government has neither confirmed nor denied as being authentic.

Whether it just an early vision or a complete one, the authenticity of the whitepaper remains to be seen. The document that the redditor refers to does not mention ERC-20 or Ethereum anywhere, and to prove the claim, the person behind the thread only provides images of presentations of Ethereum tokens that are hosted on the government’s website.

The Whitepaper that’s mentioned in the post categorically indicates that only those with access to Bolivar will have a chance to purchase Petro. Additionally, it states that the blockchain of the cryptocurrency will be made public.

The Petro, like the rest of the cryptocurrencies, is managed through operating systems supported by free software. In block chains or blockchain, all the transactions made by buyers and sellers without intermediaries are captured. Therefore, the operations leave a record and are visible to investors,

…the post read.

Although not much is yet known about Petro, and considering that the leaked whitepaper could be fake, it’s still certain that the government will conduct a token sale in order to distribute the 100 million Petros.

Around 38 million Petros will be made available for institutional investors in a pre-sale that will run for a month, raising around $1.3 billion. The institutional investors will get up to 60% on token sale. 44 million tokens will then be made available in a public sale to raise an additional $2.4 billion. The 18 million tokens that remain will be offered to the advisors that supported the initiative, as well as to the government itself.

What do you think about Petro, the oil-backed cryptocurrency? Do you believe the “leaked” information about its whitepaper? Let us know your thoughts in the comments below.