At the start of December 2017, Venezuelan President Nicolas Maduro claimed that its authorities were going to implement a national cryptocurrency named “El Petro”. According to the New York Times, such a decision of the country’s authorities was made in order to fight, as Maduro calls it, an economic “blockade” by the US against Venezuela, run by socialists.
At that time, Maduro emphasized that the launch of the “El Petro” would let Venezuela move forward to novel types of the transborder financing so that the country would grow both socially and economically.
Moreover, it was claimed that the national digital coin would be backed by the oil and some ore and mineral resources.
Finally, by the end of the year, Maduro demonstrated on national TV a paper, which unveiled the mining plan and the regulation of the national cryptocurrency, mainly, regarding its back up.
“El Petro” to Shine Bright Thanks to Diamonds and Oil
Recently, the Venezuelan authorities unveiled a decree, which describes the functionality of the national crypto coin “El Petro”. The paper displays details concerning its output, mining, purchase and vending. Also, Maduro has appointed “El Petro” to be supported by 5.3 billion barrels of damp oil worth $267 billion.
In accordance with RT, the President demonstrated the document when being broadcasted on national radio and TV. The decree executed the securing of the assured Ayacucho oil field, No.1 in the Orinoco Petroleum Belt for backing “El Petro”.
He also added that Venezuela will create a specific group of crypto experts who will be involved in mining processes in all parts of the country.
The Venezuelan political leader also assured to distribute in favor of the national cryptocurrency the Arco Minero gold occurrences in the Orinoco Belt as well as the diamond deposits of Venezuela.
The 13-Article decree is defined in the Gazette, published by the country’s government. Around half of them are dedicated to the functional details over “El Petro”.
In the Article 4, it is noted that each national digital coin will be supported by physically represented wealth, e.g., a purchase-sale deal for one barrel of oil from the Venezuelan damp oil stock or any other goods.
People, who will own “El Petro”, will possess personal virtual wallets as well as they will be able to exchange the currency for the equivalent amount of bitcoin or altcoins or for the national fiat money – Bolivares.
As it is mentioned in the Article 8, only auction or straightforward appointment, conducted by the control over the crypto wealth and so on, will be able to provide the initial placement.
It is also noted that the storage of the national cryptocurrency in Venezuela will be decentralized after the primary auction has been conducted and the crypto values are appointed to investors.
However, it is uncertain when exactly Venezuela will launch it the crypto coin, Maduro promised to introduce all the setups needed for the implementation of “El Petro” by February.