Venezuela Will Accept Payments In Its Own Cryptocurrency

The Petro coin was announced in December by President Nicolas Maduro.

by Viko
08 February • 2 min
In News
Venezuela’s government has been planning an Initial Coin Offering (ICO) of its own cryptocurrency, called Petromoneda, or just Petro, with the goal of introducing the country into the digital map of the world. The Petro will be backed by the abundance of raw materials in the country, mostly crude oil. The new policy is strongly promoted by the country’s foreign trade minister José Vielma Mora, who said at a recent press conference that Brazilian investors are ready to inject USD 300 million. Other mentioned countries, willing to receive Petro in exchange for food and medicines are Poland, Denmark, Norway, Honduras and Vietnam. Mora cited USD 435 million as a potential investment. Canada is another player, interested in the arising crypto economy of the impoverished Latin American country, in the sphere of ‘pharmaceutics for humans and animals’.

president of Venezuela Nicolas Maduro

President Maduro has already ordered the issue of 100 million Petros, that are being prepared for a presale. Each Petro coin is backed by a barrel of oil. The official name of the country-regulated token is ERC20. Some of the doubters point out that the whole operation can be a “technique for Maduro to avoid financial sanctions”. The presale of Petro, at which 38.4 million tokens will be offered, is set to start on 20 February and to continue until 19 March, officials say. One day after the presale deadline, on March 20, the ICO will take place. The price will be USD 60, the same as the price of a barrel of oil in Venezuela. Petro will be accepted for all government taxes and fees and public services. The exchange rate will be regulated by the Cryptocurrency Superintendency and the National Blockchain Observatory.