Venezuela to Launch $6 billion Backed Petros Amid Backlash From The Congress

Venezuela to Launch $6 billion Backed Petros Amid Backlash From The Congress

After Venezuela’s president Nicolas Maduro declared the soon-to-come emission of 100 million bitcoin-like coins petros, the national virtual money backed by $6 billion petroleum reserves. It was initially anticipated that the formal offering of petro would occur on January 14.

However, a few days later the petro was labeled unlawful by the country’s Congress. Now the emission of petros is questioned. But the Venezuelan Superintendent of cryptos recently assured that petros will be pre-mined and then implemented in a period of up to two months.

Our top trading bots

The World to See Petros in 6 Weeks?

In accordance with the Venezuelan media outlet El Universal, on January 10 Carlos Vargas, who is the country’s Superintendent of virtual money, notified that the emission of this digital coins will be the subject to the government’s control. Additionally, he emphasized that the state virtual coins of Venezuela won’t be minable. Instead, it will be pre-mined. It will also be appointed to the scheme which reminds of a chaffer.

“The pre-mining means that the developers of the cryptocurrency have decided to distribute a percentage of this currency or all of it among a few people, themselves or among the population of a country,” explained Vargas.

The official added that the disposal of petros will be commenced in approximately six weeks. Therefore, users will get the chance to open their own virtual wallets. Vargas also assured that not only citizens of Venezuela will be able to use the crypto-coin, but people from all over the globe as well.

He said that petro will be supported by an outstanding platform. It will allow people in various countries to purchase the Venezuelan crypto-coins without facing severe restrictions. Vargas promised that petros will be used in “all” exchanges.

The official did not refer to any specific token platform which is already functioning. But, as News.Bitcoin.com reports, the most famous one for creating tokens is called Ethereum ERC20 protocol. This is the platform which demands the pre-mining of digital coins.

Mining Issues

Initially, the president Maduro asserted he had been hiring Venezuelan miners to work on petro. The registry for miners was launched under his supervision and was expected to be closed in the late January. Vargas, in his turn, recently added that it was developed for creating an enregistrement of all those who have mined virtual money.

The official also guaranteed that with the registry citizens should not be afraid of persecution. Important to add that there have been some detentions in the state connected with mining. Although, the reason was the electricity steal. Mining itself is not considered as a criminal activity in the country.

Moreover, Vargas emphasized that it is beneficial to mine in Venezuela due to the fact that its electricity is “the cheapest in the world”. Giving an example, the superintendent mentioned China, where, according to his words, mining of one bitcoin costs $1560, whereas in Venezuela the same activity costs $100-$200.

Oppositionist Congress Stands in the Way

Earlier on January 9, as Reuters conveyed, the country’s Congress, run by the opposition, called Maduro’s crypto initiative an effort to unlawfully pawn Venezuela’s cash-poor oil reserves. Thus, the parliament called the issuance of petros illegal.

“This is not a cryptocurrency, this is a forward sale of Venezuelan oil. It is tailor-made for corruption,” the legislator Jorge Millan claimed.

Meanwhile, crypto specialists say that investors will roughly be interested in piling into petros because of Venezuela’s economic crisis, fueled by maladministration and socialists’ lack of respect for private property rights.

The members of the Congress turned to potential investors with the warning that petro would be worthless. They also said that the emission of such currency violates the constitutional requirements. According to them, the parliament has firstly to approve borrowing.

Bitcoin price dives below $31K after lowest weekly close in 8 months
Bitcoin (BTC) fell below $31,000 support on Monday after sideways trading gave way to downside pressure. BTC/USD 1-hour candle chart (Bitstamp). Source:...
A decentralized app store might lead crypto toward more centralization
The estimated windfall Apple got from its App Store in 2020 is $67 billion. That’s up from $50 billion in 2019, a 28% increase. Even as the company has...
China’s Bitcoin hash power fell before the crackdown: Cambridge data
China’s crackdown on Bitcoin (BTC) mining due to energy consumption concerns is widely regarded as the trigger for the miners’ exodus from Asia to Western...
Bitcoin's evolving narratives make it antifragile
Over the years, Bitcoin has been able to overcome naysayers by frequently reinventing its narrative. Because Bitcoin (BTC) is multifaceted, it is able to...
Mark Cuban calls for stablecoin regulation in wake of Iron Finance 'bank run'
Billionaire investor and DeFi proponent Mark Cuban has called for stablecoin regulation after losing money on what he dubbed as a “rug pull” on the Iron...
Coinbase leads $6M funding for Indonesian crypto exchange
Pintu, an Indonesia-based cryptocurrency exchange focusing on first-time crypto users, has raised $6 million to support its mission to drive industry adoption.The...
Gemini reports 'degraded performance' in key systems as ETH falls under $4,000
Major U.S.-based cryptocurrency exchange Gemini has experienced two service disruptions today and is now reporting degraded performance in its mobile app,...
Top 5 cryptocurrencies to watch this week: BTC, BNB, ADA, LTC, LINK
Over the past week, several traders bought Dogecoin (DOGE) leading up to Elon Musk’s Saturday Night Live appearance as they expected a pump. However, the...
64% of US adults are interested in crypto, new survey shows
Nearly two-thirds of adults in the United States are interested in learning more about cryptocurrencies like Bitcoin (BTC) or holding them soon, according...
Andreessen Horowitz leads $28M Aleo raise
Aleo, a privacy-focused blockchain, has secured $28 million in investments to bring its zero-knowledge applications to a wider market.California-based venture...
Litecoin Climbs 10% In Rally
Investing.com - Litecoin was trading at $307.555 by 12:20 (16:20 GMT) on the Investing.com Index on Friday, up 10.18% on the day. It was the largest one-day...
Pro traders close Ethereum longs even after today’s $1.15B options expiry
Ether (ETH) rebounded from a $1,550 low on March 24, which marked a 17% fall from the $1,870 weekly high. Even though the $1.15 billion options expiry in...
Bitcoin Will Overcome All-Time Records by 2020, Says Quoine CEO
On December 3 bitcoin saw another low of $3,800, one of the lowest rates within the past few weeks. On November 14, the most valuable cyber-coin in the...
Crypto-Exchange Coinbase Valued at $8 Billion Despite Bitcoin’s Drop
As the market of cyber-assets is going through a turmoil year, virtual money exchange Coinbase is reaping the benefits. In 2018, this American crypto-startup...
London Is Still Uneager To Endorse Cryptos
Being prevalent in a $5 trillion-per-day global foreign exchange market, London is yet to clarify its position concerning the endorsement of cryptos. However,...