Venezuela Will Reportedly Accept Cryptocurrency For Oil Beginning 2019
Venezuela will use the country’s controversial cryptocurrency Petro in the sale of oil as of 2019, says President Nicholas Maduro.
According to a news report published by state-run TV TeleSUR on Thursday, President Maduro revealed that the decision to phase in its national cryptocurrency would help Venezuela minimize its dependence on USD.
It also aims at reducing the dominance that the U.S dollar has had over the oil industry in the region and to help diversify the global market.
Venezuela has in the past sought to circumvent the use of the U.S dollar, choosing to trade in either the euro or the Chinese yuan.
The state-run media outlet quoted President Maduro as saying that:
“In 2019, we have a schedule for [oil] to be sold in Petros and in this way continue to free us from a currency that the elite of Washington uses.”
Among the president’s measures is to institute a six-year financial plan that will use petro token to evade facing the full impact of U.S led sanctions that could potentially cripple Venezuela’s economy.
Plans to begin using the token involve resorting to earlier efforts that saw the country seek trading arrangements in currencies other than the USD. This time the state wants to set up trading relationships using the petro token against a number of currencies.
Maduro’s announcement comes in the wake of a meeting that saw him hold talks with his Russian counterpart Vladimir Putin in Moscow.
According to President Maduro, Russia has already given Venezuela an example of how to go about it, with the Russian government has begun to trade oil among other products using the Chinese yuan.
In his view, Venezuela will follow Russia’s example and ‘progressively’ move towards selling all of its oil products in the country’s petro coins (also called petromoneda)
In November, Venezuela‘s minister of petroleum Manuel Quevedo announced that they would present petro to OPEC in 2019. In doing so, Venezuela would want the umbrella organization to accept petro as its “main digital currency backed by oil.”
Venezuela launched its national cryptocurrency via pre-sale in February this year, with the government moving to trump up interest in the coin in October by announcing that the token would be available for sale starting in November.
The government has maintained that the coin is in use, but observers, including the country’s opposition, have disagreed, with the Congress referring to the coin as an illegal undertaking.
In November, Bank of England blocked Venezuela’s access to its gold reserve citing concerns that Maduro’s government could misuse proceeds from the sale of the gold.
Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.