Venezuela’s Petro Cryptocurrency Is a Farce

The oil-backed cryptocurrency Petro introduced by Venezuela is still yet to function. However, latest reports indicate that the cryptocurrency is struggling.

The cryptocurrency “Petro” by the Venezuelan government intends to help the nation recover from its current economic crisis. The government reveales that the cryptocurrency will be backing up by the petrol from an oil reserve located within its borders.

However, residents of the Atapirire which is the only town located near the oil reserve has disclosed that there has been no physical evidence that the government has begun to tap the oil. They added that it is not clear if the town will be benefiting from the project.

Reuters reported that Petro which was launched earlier this year is hard to come by. The media outlet revealed that its investigation which lasted for four months. It suggested that the trade of petro is hardly existing.

The report points that the cryptocurrency is currently not under the listing of major crypto exchanges. Reuters claimes that a cryptocurrency buyer had blamed over poor debut of petro on the US sanctions that were placed on Venezuela.

The president Nicholas Maduro had earlier stated that the sale of the coin has generated over $3.3 billion. He adds that the coin was in use to pay for goods imported. However, Hugbel Roa, one of the Maduro’s cabinet minister reportedly stated on Friday that the coin is still in the development stage. Moreover, he notes that it has not generated any revenue.

The report also revealed that the body that is in-charge of petro Superintendence of Cryptoassets do not currently have a physical address, as well as, a functioning website.

What is Petro?

Back in February, Coinpedia reported the launch of the first state-backed cryptocurrency Petro by Venezuela. The coin appears as the solution to Venezuela’s persistent economic crisis. However, the cryptocurrency has been continuously in criticism by the crypto community. Also many people indicates that the coin should not be categorized as a cryptocurrency. Petro was worth $60 during launch and it has a max supply of 100 million tokens.

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Ifeanyi Egede is an experienced and versatile blockchain/crypto writer and researcher on with tons of published works both online and in the print media. He has close to a decade of writing experience. When he is not writing, he spends time with his lovely wife and kids. Learn more about how Ifeanyi Egede could be of help to your business.

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