The restless President of Venezuela announced the emergence of a new cryptocurrency called Petro Oro

The restless President of Venezuela announced the emergence of a new cryptocurrency called Petro Oro

Third day in a row do not stop the news from Venezuela.

This time the main topic of discussion was the release of a new cryptocurrency Petro Petro Gold Oro or secured by physical gold. About it the next day after starting the token El Petro, supported by oil prices, said President nicolás Maduro.

Maduro hopes that cryptocurrency will help Venezuela to circumvent financial sanctions imposed by the US.

On Tuesday, Maduro reported that the first day of pre-sale cryptocurrency El Petro attracted 735 million dollars.

By the way, the Venezuelan opposition has criticized the President’s idea and it is specifically explained than it actually is Petro. In their opinion power with the help of Petro illegally just rack up new debts to bypass Parliament, which does not want to Finance stagnation politicheskogo regime at the expense of debt that will have to give to the next generation.

“Next week I’m going to start a new cryptocurrency Petro Oro supported gold. It is designed to strengthen El Petro,” said Maduro in his speech.

The details are not followed. The information Ministry did not respond to a request for comment.

Currently, there are several cryptocurrency backed by gold. Among them, RMG, created by the Royal mint of great Britain. But President Maduro should not forget that the value of cryptocurrency is determined by the interest from the community, not the material reinforcement.

The history of the country against uncompensated expropriations and 99-percent depreciation of its currency Bolivar raised doubts in the ability of the ruling Socialist party to manage digital tokens.

The Blockchain technology is based on providing information about transactions that are open to the public. But the socialist party jealously guards even the most insignificant information, including on inflation.

U.S. authorities have warned citizens who wish to purchase El Petro, about the risk of prosecution imposed on Caracas sanctions. The acquisition of this cryptocurrency will be treated by law enforcement as the provision of credit to the Venezuelan authorities.

Sean Walsh, founder of the investment firm Redwood City Ventures, said it is difficult to do now about Petro Oro any conclusions, without knowing the specific details. It added that it is not interested in the tokens that are supported by physical assets.

“Instead of buying crypto-currency supported by gold, I better buy gold”

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