Venezuela has finally launched its cryptocurrency, Petro. Well, Petro launched to remedy Venezuela’s unending economic downturn. During a live broadcast on October 1st, President Nicholas Maduro explained the details of the cryptocurrency. It is worthy of mention that the cryptocurrency finally launched ending waves of anticipation and speculation. Also, President Maduro assured Venezuelans that the six leading cryptocurrency exchanges in the world have already indicated interests in listing Petro. Consequently, the president pointed out that the national cryptocurrency is tradable, liquid and available.

Details of the Petro Broadcast

President Maduro, who appeared bullish about Petro, noted that with the launch of the cryptocurrency, Venezuela was making history. He  promised Venezuelans that the virtual currency will go a long way toward strengthening their “financial sovereignty” as a people. On the real-world assets that back Petro, the president listed them as oil, gold, diamond, and aluminum. He went ahead to describe the digital currency as “the new version of Libro Blanco,” meaning that the Petro whitepaper. In addition, he disclosed that the new cryptocurrency would be available for purchase. While it is stated that it is available for purchase, what is nonetheless unclear is how the country will sell it.

More Promises

Also, on the cryptocurrency exchanges that have interests in new offering, President Maduro disclosed they would be working with him. He pointed out that the move is to ensure anyone who needs it can get it. In addition, he disclosed that Petro is available both in fiat currency and cryptocurrency. The statement noted that Venezuelans will start buying the cryptocurrency starting November 5th. To acquire Petro, the buyer must have the Sovereign Bolivar. Well, the Sovereign Bolivar is a new currency that promises Petro-backing.

The Essence

Ever since the South American country plunged into economic crises, it has made a number of attempts in order to end the economic morass. Indeed, the international community sees the launch of the new cryptocurrency as Caracas’ latest attempt to circumvent the U.S. and EU sanctions that caused the economic woes. In August 2018, Reuters reported that the Venezuela’s digital currency was not accepted anywhere. In addition, the Reuters’ reports say that the cryptocurrency is not sold on any major exchange around the world.

Criticism

One of the plans the government has for the virtual currency is to use it in funding a housing project for homeless Venezuelans. However, many rating sites have criticized the Petro, tagging it a “scam.” In any case, Venezuela has become a typical example of how economic crises could compel a country to develop its own cryptocurrency. As the economic downturn worsens, many Venezuelans are increasingly turning to digital currencies in droves. Consequently, the demands for many cryptocurrencies have skyrocketed in the country.