The President of Venezuela ordered the creation of the "petro" last month, exactly one month ago, on December 3, with the aim of advancing to new forms of international financing.
With this tool, Venezuela is implementing the first cryptocurrency in the world backed by the reserves of oil, gas, gold, diamonds and other natural minerals of a country. On December 27, Maduro signed the decree declaring as material support of the crypto currency Petro to field number 1 of the Ayacucho Block of the Orinoco Oil Belt.
"From the Orinoco Oil Belt, I am officializing with an international certificate in hand, field number 1 as the base of the cryptocurrency (El Petro) which has five billion barrels of oil, which means a great material wealth of livelihood of the only cryptocurrency in the world that is going to begin its functions based on verifiable, certified and verifiable wealth, "said President Maduro
President Maduro announced that, through the "Chamba Juvenil Plan" (a project that drives the government to create work for the youngest population able to work), these young cryptocurrency experts will be incorporated to develop mining farms of this tool in the country.
"We are going to call them, a special cryptocurrency team, to set up mining cryptocurrency farms in all the states and municipalities of the country," said the head of state after receiving a balance of this youth plan that have registered a total 860,811 young people, of whom 300,000 are already in productive tasks.
Here the video (in spanish) where he announces that surely the currency is minable or at least the state will promote the mining of cryptocurrencies:
"Few" days left for the petro
The sectoral vice-president of Communication, Tourism and Culture, Jorge Rodríguez, informed on December 29 that the first issue of the petro cryptocurrency would be announced in "a matter of days".
Source: Ultimas Noticias
Rodríguez celebrated the progress that has been made to develop the physical, legal and digital structure to establish the use of cryptocurrencies in the country. He commented that in just one month the Superintendence of the Cryptocurrency was created, the National Observatory of Blockchain, the Registry of Cryptocurrency Miners, and the certification of the first natural resources that will support the petroleum was made.
"We have moved fast and that allows us to make the first issue of the currency in a short time," he said.
He also Minister for Communication and Information insisted on the novelty that represents giving physical support to the currency with the natural resources of the country, an aspect that, according to Rodriguez, demanded cryptocurrency investors.
"The value of the petro will be related to the prices of gold, gas, oil and diamond; it was what cryptocurrencies were asking for from financial investors, "he said.
It is estimated that in its first issue, the petro will have an endorsement of 267 billion dollars, a value of around 5 billion barrels of undeveloped oil located in Block Ayacucho 1 of the Ayacucho Area of the Orinoco Oil Belt.
Economic sovereignty The implementation of this cryptocurrency would have a particular use to avoid international sanctions and the modalities imposed by the international economy, according to Rodríguez.
"With the emergence of a cryptocurrency we are sure that it will be an instrument to avoid the attacks of the global financial system," he said.
Another advantage offered by this new financial modality is that it contemplates the proliferation of businesses and other forms of investment, such as virtual mining.
In this sense, Rodriguez stressed that Venezuela has ideal conditions to perform this characteristic of cryptocurrencies.
"Venezuela has the conditions to generate an effective mining farm at a national level, due to the access to electricity and the Internet at low costs," he explained.
The National Blockchain Observatory and the Registry of Cryptocurrency Miners will ensure that the system maintains the same security, speed and anonymity of any virtual currency. Other Venezuelan crypto currencies will be approved and will circulate in the country.
To register as a miner you must use the following link https://registro.blockchain.gob.ve/ in which they ask your personal data and your mining's equip
Legalized the commercialization of cryptocurrencies.
It is said that "the need is the mother of the invention" and apparently this has led the Venezuelan government to get ahead of many others who have more time studying cryptocurrencies because of bureaucracy or fear of losing control, keep distance with the management of the digital currency but the leaders of Venezuela who have very little to lose (because inflation has already eaten all the value of the Bolivar) have risked and without much knowledge gave the green light to the legalization of the crypto assets
Here you can read the complete official gazette
The Minister for Communication and Information, Jorge Rodríguez, said during a broadcast on Venezolana de Televisión that the government of President Nicolás Maduro published in the Official Gazette Extraordinary the details of the operation of the virtual currency the petro, whose support will be the oil reserves Venezuelan.
The minister explained that the document created by the Superintendence of Cryptoactives and related Venezuelan activities, indicates that the petro will be a cryptoactive whose value will be that of the Venezuelan oil barrel.
"This Venezuelan cryptocurrency" petro "is about Venezuelan oil quoted in the OPEC basket, as well as other commodities, including gold, diamond, coltan and gas," says article 4 of the decree.
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," explains the Gazette.
The sale of the petro will be made through international exchanges (virtual exchange houses) and at the price of the "crypto-asset market" for the equivalent in another cryptocurrency or in bolivars at the market exchange rate published by the house of national crypto-asset exchange ".
"The holder of each petro will own a virtual wallet, which will be entirely his responsibility, as well as all the risks associated with the handling and custody of the same", indicates article 5 of the decree.
The decree adds that "the custody will be decentralized once the Superintendence of Cryptoactives and related Venezuelan activities has carried out the initial auction and assigned the crypto-assets to the investors".
Our conclusions
- The cryptocurrencies and their trade are officially legalized in the country according to official decree.
- The petro will have a backing in natural resources of the nation.
- This can be called a great flexibility of exchange control one of the biggest niche of corruption in the country so it could be done correctly improve the economic situation
Our Doubts
- How will be traded at the value of a barrel if the cryptocurrency market is so volatile? imagine an "petro" worth $ 150 and a barrel in $ 60, who will want to change the petro for a barrel that is worth almost 3 times less or on the contrary if it falls to less than $ 20 could be losing the country's resources.
- If you mine how to protect the country's resources from people who can mine it more easily or with more experience, as is the case in China?
- What would happen before a hack of one of the government portfolios where most of the coins will be?
Leave us your comments what do you think? Will it be good or bad for the nation? and follow us for more information on investments, finances and financial education.