Venezuela’s new oil backed cryptocurrency has raised over $735 million in less than 24 hours of a public pre-sale. The new cryptocurrency which will be pegged to the South American nation’s vast oil reserves looks to change the game in both the world of US sanctions and the international crypto market.
El Petro looks to help Venezuela jump back into the front line of international investment after the US systematically cut Venezuela off from the US Dollar based financial system through a series of ongoing aggressive sanctions. Additionally, El Petro looks to interject fresh market confidence in cryptocurrencies by demonstrating that it is possible to use cutting edge blockchain technology to create a crypto backed by a hard commodity. In this sense, the era of cryptocurrencies as a mere fiat is over as El Petro opens the doors to a digital coin backed by a physical product with a universally accepted market value.
Speaking at the launch of El Petro, Venezuelan President Nicolas Maduro stated,
“Today, a cryptocurrency is being born that can take on Superman”.
The Venezuelan government has made its entire White Paper on El Petro public of an official website that also explains how both small and high net work investors can buy their own oil backed digital coins.
Venezuela explains the benefits, origin and potential of El Petro in the following way,
“The PETRO (PTR) will be backed by the Bolivarian Republic of Venezuela and the wealth of its large crude oil reserves. More importantly, the Petro has been created in an innovative manner, using the highest standards in block chain technology and information security, thinking of a future where electronic asset-representations will enable more direct trade as well as government work within the framework of true financial and economic independence.
During the last 4 years Venezuela has experienced the biggest financial crisis in its history, a situation that has resulted in a devaluation of its national currency, the bolivar.
Within the framework of policies to strengthen monetary sovereignty and promote welfare by bringing power closer to its citizens, the government of the Bolivarian Republic of Venezuela has decided to embark on an ambitious project for the future, with the vision of turning the country into a blockchain-based solutions development hub for emerging economies.
The Petro will be the foundation of a policy to promote development, infrastructure and training of young people in electronic mining, coding, cryptography, network security and economics 4.0, that will enable the exploitation of Venezuela and other developing countries’ most valuable assets in a new world of transparent, deconcentrated and manipulation-free markets, all thanks to technology”.
In many ways, El Petro is one of the biggest tests to see how far a nation can take an official cryptocurrency against the onslaught of not only the traditional western financial markets but against the US government itself. Thus far, Venezuela has failed to capitulate in the face of any US challenge, El Petro is the biggest test yet, but it also offers the potentially highest return for those interested in helping Venezuela to help itself and others throughout the world.