The Petro cryptocurrency will not be backed as much as previously thought
|Venezuela's cryptocurrency the Petro will not be backed as much as previously thought by physical oil.
The President of the nation Maduro said that the 30 million barrels are ready for commercialization. Much less than the earlier statements of 5 billion barrels.
The project was announced back in 2018 and it was made in order to avoid sanctions put in place by the US and a few other governments.
It was initially said that Petro would be backed by 5 billion oil barrels, gold and other precious metals that can be found in Venezuela.
The President had been promoting the coin after inflation reached high levels and international pressures began to take its toll on the home currency bolivar.
At the same time, it was not working due to the adoption of Bitcoin and other major cryptocurrencies.
Now that Maduro has under-delivered on the backing it will be left to see if the project works or if in time more commodities will be used to secure its value.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.