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Venezuelans Cannot Buy Petro With Bolivars

Feb 26, 2018 Posted /  4374 Views

Venezuelans Cannot Buy Petro With Bolivars

The president of Venezuela is promoting the innovative expected rescuer, Petro with a motive to  "promote well-being, bringing power closer to the people.” The concept behind furtherance of the virtual token is idealistic, but it is hard to acknowledge the token serving its motive and empowering people as Maduro is not even letting its inland investors to put their money on Petro.

The pre-sale exchange platform of Petro, its website is only accepting U.S. Dollars and Euros, and contender tokens Bitcoins and Ether. President Nicolas Maduro initiated the pre-sale on 20th February which will last till 19th march only. The president claims that the token will be backed up by the oil reserves of the nation.

The issuing of virtual tokens is a last-ditch attempt by Government of Venezuela to raise funding as the nation has been staunched from gathering liquid assets through traditional securities. In such situation, Venezuelan population has been forbidden from participating and buying Petro in exchange for fiat currency of Venezuela, Bolivar.

On finding the current restriction on buying of Petro, a Venezuelan twitter user presented his wrath saying: "I only have my currency, the bolivar, and I can’t access the Petro. I demand an explanation as a Venezuelan." -  @JanethMcc

Venezuelans can buy Petros using Bolivars via secondary market, as trading Bitcoins in peer-to-peer online exchange; the Petros will be traded at the black market rate. The current rate of Bolivar in the black market is about seven times higher than the original price, at about 200,000 per dollar due to hyperinflation condition.

Currently, Venezuela owes $60 billion (approx) to foreign creditors and accumulated about $735 million through pre-sale of Petro. As per white paper outline plan, the maximum limit of fundraising through virtual token is $4.9 billion, which can take place if the government succeeds in gathering an amount worth 82.4 million of Petros in pre-sale at  $60 per token. The half of the raised amount will go to "sovereign fund," and the rest of the fundings will be utilized in development of the project.

In an interview with Bloomberg the managing director at Caracas Capital, Russ Dallen stated that the country is facing a shortage of necessities such as food and medicines. There is no guarantee that the nation will be able to provide oil in exchange for Petros.

As per white paper, the virtual token is based on Ethereum technology, but the user guide published by the government says that NEM is the underlying technology. The government claims that till now they have accumulated  $735 million through pre-sale whereas the blockchain presents only half of that. So, investors need to overlook the operation of the digital coin.

When the speculators are ready to accept a virtual token based on a meme and the self-proclaimed “Useless Ethereum Token,” then anything can become a part of Digital Economy.

"At the right price, people will buy anything. Even Venezuela’s latest joke," - Dallen

Maduro is certainly hoping for the same until Bolivars becomes part of it.

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Tags: Venezuelans Buy Petro population of Venezuela

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