Venezuela reveals the details about its own Cryptocurrency Petro

Nishanth Shetty

Nishanth Shetty

January 2, 2018 10:33 am

Venezuela reveals the details about its own Cryptocurrency 'Petro' | Coindelite News
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Cryptocurrency News

The Venezuelan government has issued a declaration describing the operation of Venezuela’s national cryptocurrency, which is called as Petro. The declaration describes the government’s plans for the new currency, including the issuance, mining and also trading. Venezuela’s communications minister, Jorge Rodriguez, says that the cryptocurrency ‘Petro’ will be backed by 5 billion barrels of crude oil, which is approximately $267 billion.

Rodriguez described:

“Camp one of the Ayacucho block will form the initial backing of this cryptocurrency.”

Ayacucho block is located within the southern Orinoco Belt, which is known as the largest deposits of petroleum in the world.

Venezuela’s president Nicolás Maduro confirmed:

“We will set up a special team of cryptocurrency specialists so they will be engaged in mining in all states and municipalities of our country.”

Issuance and Trading Plans

The Maduro government has published a Gazzete which mentions the declaration containing the 13 parts, half of the article concern the details of the Petro.

The article 4 of the declaration explains the assets backing up with the new currency:

“Petro is about Venezuelan oil quoted in the OPEC basket, as well as other commodities, including gold, diamond, coltan, and gas.  Moreover, each Petro will have, as physical support, a purchase-sale contract for one (01) barrel of oil from the Venezuelan crude oil basket or any commodities that the nation decides.”

The article 5 describes the nature of the wallet holding the Petro:

“The holder of the Petro may change the market value of the crypto-asset for the equivalent in another cryptocurrency or in Bolivares at the market exchange rate published by the national crypto-asset exchange house…The holder of each Petro will own a virtual wallet, which will be his [own] responsibility.”

The article 8 provides some information regarding the Initial Coin Offerings (ICOs):

“The initial placement will be made through auction or direct assignment, made by the Superintendence of the crypto-assets and related Venezuelan activities.”

The government explained in Article 9:

“The custody will be decentralized once the Superintendence of the crypto-assets and related Venezuelan activities has carried out the initial auction and assigned the crypto-assets to investors.”

Jorge Rodriguez recently announced:

“In the month of January, I will be presenting all the conditions for the Petro to start operating.”

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