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Venezuela announces “petro” pre-sale to start from Feb. 20

Feb 01, 2018 Posted /  3665 Views

Venezuela announces “petro” pre-sale to start from Feb. 20

Venezuela is getting some spotlight in the crypto-world with its new cryptocurrency called "petro" and now it has announced that its pre-sale will start from February 20. The currency has been introduced with some high hopes that it will help to revive and pull the country out of its long-running economic crisis. The country is in dire need of financial strategies and President Nicolas Maduro is under immense pressure from people and opposition.

However, critics have slammed this move and commented that the government's move is entirely illegal which is just presenting bogus promises amidst quadruple inflation and major shortages. Maduro had earlier remarked that Venezuela will issue 100 million tokens each valued and supported by the equivalent of one barrel of Venezuelan crude. That would put the value of the entire petro issuance at just over $6 billion.

"All the cryptocurrencies of the world have been revalued after Venezuela's announcements about the creation of the petro," said Maduro in a speech broadcast on state television.

Venezuela is searching to raise hard currency amid a gripping economic crisis.

The government has said that the petro issue will help the cash-strapped country make financial transactions and overcome U.S. sanctions against Maduro's socialist government.

Nonetheless, the United States earlier this month warned investors curious about the petro, saying dealing in it may contravene sanctions because "the petro digital currency would appear to be an extension of credit to the Venezuelan government."

The country's opposition said it is illegal to use oil reserves - of which Venezuela has the largest in the world - to issue debt.

A document by advisers reviewed by Reuters two weeks ago recommended the government sell $2.3 billion in a private offering, with up to 60 percent discount, in mid-February.

The price of one bitcoin, a bellwether for the cryptocurrency market, has fallen significantly in the last month.

Amid rising concerns about the security of virtual currencies, hackers made off with more than half a billion dollars from a Tokyo-based exchange late last week.

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Tags: Venezuela crypto-world

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