Venezuela had released its state cryptocurrency — El Petro

Today, Feb 20, Venezuela had released its state cryptocurrency — El Petro.

Last December the president of Venezuela Nicolás Maduro announced his plans on creating a sovereign cryptocurrency, — El Petro, —  backed by Venezuelan oil. The project is intended to support and strengthen the country’s economics, develop the financial independence, decrease the sanctions’ impact and attract foreign investments under the crisis.

From the beginning, the digital currency was supposed to be backed by gold, diamonds and 5 billion barrels of oil from Ayacucho on the Orinoco river’s territory. At an early stage, 1 El Petro will be worth 1 barrel and approximately $60 but later depend on the other two resources. 

At first, the Maduro’s idea was declined by the parliament due to his obscure motives such as avoiding debts, attracting illegal investments, and supporting corruption. Anyhow, at the end of January the president had announced the date of the pre-sale start. The emission will consist of 38 million coins. 

Unlike by the US, the new cryptocurrency was welcomed by Brazil and, possibly, Russia.