Venezuela Announces Launch of State-Owned Cryptocurrency ‘Petro’

The Economy Department of Venezuela recently announced on Twitter the launch of the state-owned cryptocurrency ‘Petro.’ The Venezuelan government has issued Petro to ensure the development of an independent, transparent, and open digital economy coupled with the direct and active involvement of citizens.

According to the announcement, the highly controversial ‘Petro’ can now be purchased with both fiat and crypto from the coin’s website or directly from the National Treasury for Crypto Assets, subject to KYC approval.

Petro can now be bought with Bitcoin (BTC), Litecoin (LTC), Ethereum (ETH), and Dash (DASH). However, the National Cryptocurrency Association reports that the coin is currently available only for BTC and LTC, among other cryptocurrencies.

Venezuelan President Nicolas Maduro announced that Petro would soon be publicly tradable on six crypto exchanges. The six selected exchanges are Bancar, Afx Trade, Cave Blockchain, Amberes Coin, Cryptia, and Criptolago.

The government has also appointed Joselit Ramirez as Superintendent of Cryptoassets. He will reportedly be responsible for addressing all customer service issues related to Petro.

The Venezuelan government believes that Petro will serve as an effective mechanism to help bring in economic stability and financial independence to the crisis-driven nation. Therefore, the government will take all necessary measures to promote Petro thereby encouraging citizens to consider Petro as a means of investment, savings, and exchange.

In his October 1 speech, Maduro had mentioned that the state coin is backed by oil. However, Petro’s brand new white paper issued later clarified that the state-owned currency is backed 50 percent by oil, 20 percent by gold, 20 percent by iron, and 10 percent by diamond assets.

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