• 9 hours TikTok Is Becoming A New Battleground For Tech Politics
  • 14 hours Peru's Mining Industry Pummeled As Coronavirus Cases Surge
  • 16 hours Why The World Is So Divided In Its COVID-19 Response
  • 1 day Equities Cheer Stellar Jobs Report, But It May Be Fleeting
  • 2 days Is Tech Billionaire Peter Thiel Done With Trump?
  • 3 days Musk Takes To Twitter To Troll The SEC
  • 4 days Lunar Mining May Commence As Early As 2025
  • 4 days Immigration Will Go Bust Without $1.2B Bailout
  • 5 days The Economics Of The Space Race
  • 6 days Why The World's Central Banks Aren't Yet Sold On Renewables
  • 6 days How Much More Cash Can Uber Burn?
  • 7 days Inside The Biggest Counterfeit Gold Scandal In Recent History
  • 7 days EU-U.S. Trade Relations Are Deteriorating
  • 7 days Over 184 Companies Have Bailed On Facebook
  • 8 days BP Sells Petrochemical Business For $5 Billion
  • 8 days U.S. Moves To Secure Domestic Rare Earth Supply
  • 8 days E-Commerce Explodes As Boomers Go Digital
  • 9 days Major U.S. Cities Are Turning To Renewables
  • 9 days Economic Reopening Backfires, COVID Surge Snaps Recovery
  • 10 days How Are Low Car Sales Impacting The Metals Market?
Iran Looks To Launch Its Own Cryptocurrency

Iran Looks To Launch Its Own Cryptocurrency

Iran has proposed the creation…

$32 Million Crypto Heist Halts Tokyo Exchange

$32 Million Crypto Heist Halts Tokyo Exchange

Tokyo’s Bitpoint Japan Exchange has…

  1. Home
  2. Cryptocurrencies
  3. Other

Venezuelan Constituent Assembly Approves Oil-Backed Crypto

Venezuela

Venezuela’s National Constituent Assembly has finally given the go-ahead to the country’s oil-backed cryptocurrency, El Petro, after initially declaring it unconstitutional. According to a statement by Vice President Tareck El Assaimi, the decree passed by the establishment will establish the basis for the management of these alternative mechanisms in financial and commercial activities.”

The El Petro was first offered in pre-sale in February, and following the launch President Nicolas Maduro said proceeds had reached US$735 million. The actual sale of the cryptocurrency began a month later, and Maduro claims this has raised US$5 billion to date. There is no evidence of these proceeds yet. The cryptocurrency is backed by 5 billion barrels in oil reserves from the Ayacucho bloc 2 in the Orinoko belt.

The Petro, which Venezuela touts as the first cryptocurrency issued by a country, is promoted as a means to “boost monetary sovereignty”, while many analysts think it is just a desperate attempt to skirt U.S. financial sanctions. This attempt was doomed, however, as Washington was quick to ban trading in El Petro from the United States.

Analysts think that the Petro won’t bring real benefits either to Venezuela’s ravaged economy or to its people who suffer from shortages of basic necessities amid a hyperinflation expected at 13,000 percent this year by the IMF. Related: China Ups Pressure In Artificial Intelligence Race

Caracas, on the other hand, says it has already begun reaping the benefits of the cryptocurrency. According to Maduro, 30 ambulances for delivery to the Vargas state have been purchased with El Petro.

Earlier this month, the Venezuelan Foreign Ministry also said that Russia was mulling over the use of El Petro for transactions with Venezuela. There is even speculation that Russia played an important role in the launch of the currency as a way of testing the waters for avoiding sanctions through the use of cryptocurrencies.

By Irina Slav for Safehaven.com

More Top Reads From Safehaven.com:

Back to homepage

Leave a comment

Leave a comment