Venezuela's Own Oil-Backed Cryptocurrency Is Available For Presale Today

The petro, cryptocurrency of revolutionary Venezuela, was presented in early morning society, ready to raise funds for the exhausted Bolivarian coffers when there are only two months left for the presidential elections. The process initiated yesterday contemplates the emission of 100 million petros, with a pre-sale that has two phases: the private one, started up already, for 38.4 million, and the public, scheduled for March 20, which includes the sale of 44 million, plus the 17.6 million left by the State.

Maduro announced on Tuesday that the pre-sale of the petro reached 596 million euros since its activation, midnight Monday, until 8.00 pm local time on Tuesday (00.00 GMT). "It is 20.32 (00.32 GMT) minutes of February 20 and we have achieved an intention to buy in the presale in the order of 4.777 billion yuan , 596 million euros, 735 million dollars," announced Mature in the act of launching his initial offer.

"It will help us to put a stop to the financial encirclement that they want to impose on us from the outside, with the petro we will add a great victory to our adversaries, for the happiness of our people," Nicolás Maduro said before the launch. The petroleum is born with a value equivalent to a barrel of Venezuelan oil (below $ 60) and with the novelty of having the backing of the reserves of the Orinoco Belt, the richest on the planet.

Chavismo hopes that the process of buying their petros will be attended by investors from the Middle East, from Russia, from the rest of Europe and America, to which the hundreds of Boliburgan entrepreneurs scattered around the world would join, the main beneficiaries of the assault on the public treasury. from the country. "The exclusive sale of the cryptocurrency in the exchange offices will be done through bolivars, with which we are witnessing the last days of the dollar," explained Carlos Vargas, superintendent of cryptocurrencies appointed by Maduro.

Against the exaggerated optimism of the government a wall of uncertainty rises from the international financial community and from the interior of the country. First because the petro is already born in illegality, not being approved by Parliament. And second because of the doubts surrounding the property right of the cryptocurrency. The White Paper of the new virtual currency does not explain how the support of oil reserves will be effective.

"We are facing a highly dangerous debt issuance, it is more like a bond of public debt," deputy José Guerra, a former official of the Central Bank of Venezuela, also pointed out the immense difficulties the government finds to pay its external debt. , which has caused several defaults.

"It can not be considered a currency even though it can be used as a means of payment, it is a public credit operation because through the petro the Republic will obtain resources through reimbursable financing," added jurist José I. Hernández.

Suspicions about the petroleum go further. "It will be controlled instead of free and the trust (in him) will be in a government and not in a network of all the participants," warned José Antonio Gil Yepes, director of Datanálisis.

The crypto active of the revolution also arrives at the worst historical moment for the bolivar, the national currency pulverized by hyperinflation, which in 2017 exceeded 2,600% when a neighboring country like Colombia closed with 4.09%. The trend of the last weeks advances that in 2018 prices will rise above 10,000%.

Since the National Assembly has slipped that the government prepares a new mega-devaluation, which would be to remove three zeros to the tickets, as Hugo Chávez already did in 2008. The exorbitant figures are paid daily, from half a million bolivars per an egg carton up to 13 million for a new tire, added to the shortage of cash (at the border one million bolivars in paper money are exchanged for 1,800,000 by bank transfer) advise the elimination of zeros.

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