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Venezuela set to launch its “Petro” cryptocurrency this Monday

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The Venezuelan Crypto

Venezuelan cryptocurrency regulator is expecting investments in its new ‘petro’ cryptocurrency from all across the globe including Qatar, Turkey and other parts of the Middle East. According to reports, there is some interest in the United States and Europe as well.

The first round of sale of the petros is scheduled for this Tuesday. President Nicolas Maduro’s government believes that this move will help them circumvent the financial sanctions imposed by Washington.

Sceptism

However, the precarious financial condition of Venezuela is likely to deter many investors. Also, the US Treasury Department has issued a warning against Petros as effectively violating the sanctions against the OPEC Nations.

“On Tuesday, there will be quite a few announcements about the start of the process, and there will surely be a lot of investors from Qatar, Turkey, and other parts of the Middle East, though Europeans and Americans will also participate” commented the Cryptocurrency Superintendent of Venezuela. He did not elaborate any further on the situation.

There have been no release of any information regarding the petros from the Venezuelan government yet. However, advisors working with the government have suggested a 60% discount sale of 38.4% of the petros in a private auction.

The Real Picture

While the government is set to explore the future of currency, the country itself is in a frail condition with quadruple-digit inflation and shortages of food and medicine. This has amped up the incidences of malnutrition and preventable diseases in the country.

President Maduro accuses the economic war led by opposition with the help of the Trump government for the conditions. The financial sanctions prevent US banks and investors to purchase the newly issues Venezuelan debt, thus preventing the country from procuring funds abroad. Thus, effectively preventing the government to bring in hard currency to refinance existing debt.

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