Venezuela To Use Petro For International Exchange Starting In October

Venezuelan President Nicolas Maduro has revealed that Venezuela would be making use of its oil-backed virtual currency (Petro) for international commercial transactions starting in October.

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Venezuelan President Nicolas Maduro has revealed that Venezuela would be making use of its oil-backed virtual currency (Petro) for international commercial transactions starting in October.

Venezuela to use Petro for International trade

In an appearance on the National Television of Venezuela (VTV), on September 21 Maduro delivered a speech on the latest economic issues of his country.

While addressing the problems of Venezuela, Maduro announced the country would be ready to start using the Petro for international trade starting from October.

“Petro comes into play as a currency for exchange, purchase and convertible currencies for the world.”

This news comes not long after President Maduro announced the launch of a new fiat currency, the Sovereign Bolivar.

In August, Maduro announced that the foreign exchange rate of the Petro cryptocurrency would be fixed at $60, or 3,600 re-denominated bolivars.

President Maduro had also issued an order for domestic banks in Venezuela to use the Petro as a unit of account, with the Sovereign Bolivar also being pegged to the oil-backed Petro.

Critics panned the announcement as rather vague, pointing to the fact that the Venezuelan President did not state the sectors where the Petro will be used, nor did he name any countries that will accept the virtual currency.

Diverse views on the Petro

Regardless of the President’s plans for the Petro, Reuters recently reported that the Oil Minister of Venezuela Rafael Ramirez alleged: “the Petro […] only exists in the government’s imagination.”

The Petro token was launched in February of this year backed by the country’s oil reserves amid country’s severe economic meltdown.

Such criticism of the virtual currency casts doubts for economists and analysts that the token would eventually make its way into the international market.

Maduro promised that the adoption of the Petro into international trade follows a chain development and deployment of the token which falls into the economic recovery program of Venezuela, and is proceeding well.

Petro; a controversial virtual currency

The Petro has been a cause for much controversy since its launch, with some lawmakers in Venezuela announcing plans to make the token illegal.

United States President Donald Trump also announced signing an executive order to impose new sanctions against the country, banning transactions performed with the Petro.

Maduro announced that PDSVA, the Venezuelan state-owned oil company would begin using the Oil-backed virtual currency for transactions starting from August 20.

Contrary to the President’s announcement, recent surveys show that the Petro has shown little to no sign of activity, and currently has no trade on any of the major global crypto exchanges, nor is it backed yet by Venezuelan oil.

In August, media outlet Wired announced that the state-owned oil company PDVSA had an outstanding debt of about $45 billion and showed no signs of any trading activity.

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