Venezuela announced the creation of another crypto currency[↻70%]
President of Venezuela Nicholas Maduro announced the establishment of Venezuela's second own state crypto currency Petro Oro, secured by gold. Earlier, the South American country launched a crypto currency El Petro, which promises to provide oil.
On the eve, on February 20, Venezuela launched sales of El Petro. The authorities promise to issue 100 million units of this currency, of which 82.4 million will be available to investors at the first stage. El Petro is one of the few crypto-currencies that is provided with a real asset. President of Venezuela Nicholas Maduro promised to provide the digital currency with local oil, so the cost of El Petro will be about the approximate cost of one barrel of Venezuelan oil - about $ 60 at the moment.
According to the decree of Maduro, 5 billion barrels of oil from the Ayakucho field in the oil belt of the Orinoco River were taken for crypto currency. The authorities hope that EL Petro will allow Venezuela to successfully raise funds from abroad, which is extremely necessary for the crisis-ridden Latin American country.
The next day, Maduro made a statement about plans to launch another crypto currency:
"I do not want to get ahead of the events, but we have a surprise regarding petro (oil) and gold, which will have the same scale as in the case of oil. But this is the theme of the next week, "the head of state said.
President of Venezuela, speaking during a meeting with members of the PPT party, assured that Petro Oro will be even more powerful due to the strengthening of El Petro as a Venezuelan crypto currency.
Earlier, Maduro said that El Petro would help the republic build up "monetary sovereignty" and overcome the "financial blockade" on the part of the United States.
Also, the launch of the crypto currency will help in the search for new sources of budget revenues, the president believes.
The economic crisis has been going on in Venezuela over the past few years. In July last year, S & P published a report on the financial and economic situation in Latin America in the second quarter of 2017. Then analysts reported that the fall of the Venezuelan economy could stop at best in 2019.
