On Friday, January 5, Venezuelan President Nicolas Maduro, together with his entire Ministers, gave all information about what Petro is really like.
At that meeting, President Maduro announced the issuance of 100 million petros, a unit that the head of state has presented as "the cryptocurrency of Venezuela" and which is equivalent, as he said this Friday, to the value of a barrel of oil in the country. international market.
"I have ordered the issuance of 100 million petros with the legal sustenance of the Venezuelan oil riches," said the president during the first council of ministers of the year.
"Each petro is going to have a value equal to the price of the oil barrel of the Venezuelan basket"
For this Friday the barrel quoted at $ 59, that is reported by the international news portal Efe.
The President who gave all the information about the petro said that it had already been activated and that the virtual exchange houses known as the 'exchange' would already be in use.
He stressed again that the creation of the cryptomenda will serve to overcome the financial sanctions imposed by the US government against Venezuelan government officials.
The President also affirmed that there are already "50,918 active digital miners in Venezuela" in Venezuela, and called "for next Sunday, January 14, the first national meeting of the cryptocurrency miners, the petro".
Up to here all wonderful with all the information given by President Maduro regarding the petro.
But the truth about the petro is another.
it turns out that the petro is NO CRYPTOCOIN
And this I do not say, yesterday in statements of the President, said:
"The 'Petro' will work in a Token or pre-mined scheme controlled by the State, the change will be in virtual exchange houses in their secondary negotiation"
The Petro would be an instrument whose emission will be centralized, and which apparently will not use the blockchain. Therefore it would not be a cryptocurrency, nor a cryptoactive, but rather an electronic asset.
One feature that apparently would share the Petro with cryptocurrencies would be the use of a Token. However, it would be pre-mined and totally controlled by the state. The transactions would be carried out through "virtual exchange houses"
As reported yesterday the "face value" of this "issuance" would be around USD 5.9-6.0Bn at the current value of the CPV.
And the real problem is HOW IS PETRO GOING TO MINING? That is the great uncertainty about how the mining of Petros will be carried out. Sometimes they seem to indicate that it will be centralized, in other statements they suggest that there will be some private participation. So much uncertainty about its supply function, does not generate confidence
It is crazy to centralize the mining of a cryptocurrency if it is intended to generate confidence.
What must be done is to try to decentralize as much as possible the hash capacity is an objective that the most respected blockchain fosters.
(Now, what is the market value of the Petro? It will dawn and we will see, but it was born in the midst of an unprecedented collapse of the oil industry, default and sponsored by an unsustainable fiscal and monetary state that revived hyperinflation.)
This was indicated yesterday by Gorka Lalaguna, Venezuelan Economist and Professor of the Catholic University Andres Bello from his Twitter account and could not be more in agreement with him.
28 days ago I made a post with the first information about the petro Source and asked "The Petro will be a cryptomende or not?" And I did this because of some statements that the president of the Petroleum Cryptocurrency Superintendence would do, and this already indicated that the petro would not be a cryptocurrency but a cryptoactive exchange for goods and services and even other assets.
That is why I think that this type of information should not be handled by a president and less by Nicolas Maduro, much less by the vice president, this type of information should be given by adequate personnel but as we know this will never happen, the Venezuelan government if it has something characteristic is that in every position where a person who knows of that function will never be there, everyone who has an important position is because it has a very important approach to the main leadership of the government.
I believe that El Petro will have the same life of any project that occurs to the Venezuelan Government, that with respect to the Venezuelan people who are affected by any idea that occurs to the president and his ministers, when it is no longer useful for them. will give another name, will have a re launch and say that it is a thousand times better than the previous one, the only true thing is that it will be worse for the Venezuelan.
Thanks! Great article. However, what I have read recently is that the token will be based on NEM. Is that true?