Various economic sanctions are imposed on Venezuela. The nation launched a cryptocurrency, Petro on Feb. 20 in a pre-sale that ended on March 19. However, it has seen received mixed reactions to notionally oil-pegged Petro since its issue. From an outright ban by the US to calls from the international community that the scheme was nothing but a ploy to circumvent sanctions, Venezuela has courted controversy from the outset. Separate claims involve Russia, which some say was instrumental in facilitating Petro’s creation. Opening up alternative markets for trade thus comes as little surprise as Maduro attempts to live up to his original promise the coin’s market cap would be a least that of Venezuela’s oil reserves – around $5.9 billion.
Mohit Kalra, CEO of Coinsecure says:
“Venezuela has mooted the idea of offering India at least 30 percent discount on crude oil purchases through Petro [PTR] during the recent discussions in Delhi. They are going to different countries and making offers. The offer that they have given to the Indian government is: you buy Petro and we will give you a 30 percent discount on oil purchases”
The practice of leveraging the country’s oil wealth came to light by media in India. They reported that Caracas had offered a 30% discount on its crude oil imports if the government paid in Petro. At the same time, a delegation of Venezuelan blockchain department experts visited India in March and came to an agreement with local Bitcoin exchange Coinsecure. By the same token, other exchanges could interact with the coin through a white label agreement, Business Standard reported on April 29.
Mohit Kalra also added, “That would be run by their brand name, but the back-end will be us. We plan to provide them with 10-15 cryptocurrency players.”
A Venezuelan official “indicated they have received response from the private sector in India,” Business Standard notes.