In a bid to pull out of the economic shambles that Venezuela has fell into, President Maduro had announced the launch of the country’s petro cryptocurrency. According to statements, Venezuela received $735 million in the first day of the pre-sale of petro.
The hope is that petro would help Venezuela dodge the US sanctions as its legal tender drops to record lows with the country facing hyperinflation and a failing socialist economy.
There have been sceptics to petro. Blockchain experts believe it will fail to attract any major investments. Further, the opposition claim that this sale constitutes issuance of illegal debt as it circumvents all the majority-opposition laws. And, the US warns that the move violates the imposed sanctions.
President Maduro hasn’t divulged any information other than the figure. The figure itself has not been substantiated by any proof as of yet. Also the initial investors are a black box to the everyone. However, he revealed that petro can be used in tourism, gasoline sales and some oil transactions.
“Today, a cryptocurrency is being born that can take on Superman,” mused Madura, referring to the US as superman, in a state television address.
The preliminaries are in order for petro. The official website outlines instructions to setup a wallet and hold petro. The crypto is set to go public next month.
The entire issue of petro of 100 million token is to be valued at just above $6 billion, as revealed previously by President Maduro. However, no pricing details were revealed on Tuesday.
“Each petro token would be backed by one barrel of Venezuelan crude oil,” said Maduro.
As reported earlier by CoinPublish, many advisors have recommended a private auction to sell 38.4% of the holdings at a 60% discount.
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.