Venezuela Space to Ban its Oil-Backed Cryptocurrency “Petro”

On Monday, Jan 15, Venezuela introduced a willpower to segment out its authorities-backed cryptocurrency, Petro (PTR), valid 5 years after it was as soon as first launched in February 2018.

The news was as soon as displayed in a message displayed on the native Patria Platform, the correct web place where the Petro (PRT) was as soon as tradeable.

Venezuela President Launched the Petro (PTR) Cryptocurrency in Feb 2018

Venezuala, President Nicolas Maduro, had launched the Petro (PTR) in Feb. 2018 pre-sale, in a characterize to give a boost to the nation’s native fiat forex, the bolívar, amid an economic crisis additional exacerbated by U.S. sanctions.

The PTR token, was as soon as backed by the nation’s filthy rich oil reserves, but sadly was as soon as embroiled in controversy even earlier than the open.

Before the entire thing, the nation’s opposition-controlled congress mentioned that was as soon as unlawful to borrow towards the oil reserves. And in 2019, U.S. authorities sanctioned a Russian bank for financing the Petro cryptocurrency.

Meanwhile the Venezuelan authorities, led by Maduro made a lot of frantic makes an try to link the Petro with classic social products and providers within the nation. As an illustration, it was as soon as made a requirement to manufacture passports to fund a social housing initiative and the minimum wage was as soon as 50% pegged to it.

A corruption scandal over monetary irregularities spherical the use of crypto sources for oil operations which ended in the resignation of the petroleum minister Tareck El Aissami  was as soon as the leisure nail within the coffin for the Petro. A ccrackdown on bitcoin mining operations in nation moreover adopted.

Basically based on native experiences all remaining petro tokens are to be transformed to bolivars.