Venezuelan National Assembly invalidates Petro

Days after President Nicolás Maduro announced the issuance of 100 million oil coins, the Venezuelan opposition parliament decreed that the proposed crypto currency violates the constitution, since the loans must be approved by the legislature.

On Tuesday, the Venezuelan parliament, the National Assembly, banned President Nicolás Maduro's project to create and sell an oil-backed cryptocurrency sponsored by the state and called "Petro."

Last Friday, Maduro gave an official order for the issuance of 100 million petros, each equivalent to the value of one barrel of Venezuelan oil (approximately USD 59.07).

At that price, the 100 million petros would create approximately 6 billion dollars for the economy with a shortage of cash.

On Friday, Maduro also convened a petromineros meeting, scheduled for January 14, 2018, where he plans to reveal Petro's technical report.

Opposition lawmakers are dismayed by the president's strategy and now, the National Assembly calls Petro in an attempt to illegally mortgage Venezuelan oil reserves.

Government indebtedness, legislators said, must be approved by the legislature. The legislator Jorge Millán said:

"This is not a cryptocurrency, this is a future sale of Venezuelan oil, but it is tailored for corruption."

The parliament told aspiring investors that Petro would not be recognized after Maduro leaves office (seeking re-election).

In August, Venezuela elected the controversial Constituent Assembly, an all-powerful entity composed exclusively of government supporters, to back the Maduro government.

That same month, the Constituent Assembly voted to assume the powers of the ordinary parliament (National Assembly), but so far its actions still have little weight with the global entities, which still consider the National Assembly as the legitimate constitutional authority.

Maduro first announced the Petro-backed Petro in a televised speech in early December.

Source: ETHNews