Venezuelan President Nicolas Maduro recently announced the official launch of the country’s official petro cryptocurrency, together with the release of the Spanish-language white paper for the coin.
According to Maduro, the cryptocurrency will be accessible for sale starting from November 5, 2018, when Venezuelan residents will be able to exchange the present fiat currency the Bolivar Soberano for Petro. Maduro even announced in the new white paper that Petro, now the nationwide cryptocurrency of Venezuela, will include support from gold, diamond, iron and aluminum crypto-assets.
Petro’s product new white paper says the currency is 50 percent backed by oil, 20 percent by gold, 20 percent by iron and 10 percent by diamond assets. Maduro stated that the authorized website for the Petro cryptocurrency has already been launched and the official Petro wallet is also available in Google Play. President Maduro mentioned in a release that this launch is the start of a ten-year plan involving Petro and that he hopes to use it to steady the country’s economy.
As per Express news, Petro would be used as the unit of account for local salaries, goods and services as the national sovereign Bolivar kept struggling with hyperinflation. But despite Maduro’s statements. experts remain doubtful on the use of Petro. As per company information, Venezuela has deals in place with Brazilian companies to accept the currency, but U.S. President Donald Trump has taken up an executive order excepting American businesses from accepting it and U.S. officials have called the currency a “scam.”
Petro cryptocurrency uses the process of converting information to verify the transfer of funds and functions self-sufficiently of a third party like a central bank. The first and best-known example is Bitcoin which skyrocketed to almost $20,000 last year. Since then, it’s lost more than 60 percent of its value, according to the news published on CNBC.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]