Venezuelan President Nicolás Maduro has elected to forge ahead with his government’s controversial oil-backed cryptocurrency, which is now set to begin pre-sales on February 20th.
The statesman has elected to unveil his planned Petrocurrency’s official white paper through a state broadcast, though the document has not – as yet – been made available to the wider public through any official channels.
Presiding over the announcement, Maduro quipped that “We have reached the future. Venezuela advances as an economic power… Venezuela is at the forefront of the world, and we are going to accelerate permanently the start-up of the cryptocurrency, the Petro.”
During his official briefing, Maduro offered his intention to “accelerate the entry into the operation of el petro cryptocurrency and mining farms… All the savings banks in the country can have their mining farms and participate in el petro.”
Maduro has previously issued orders compelling the creation of a petrocurrency – prior to the Venezuelan parliament’s decision to declare the planned currency illegal, Maduro confirmed that each Petro would bear the value of a single barrel of oil, stating that “I’ve ordered the issue of 100 million Petros, based on national wealth. Each Petro will have the value of a barrel of Venezuela’s oil.”
The petro’s price would be pegged to the value of Venezuela’s basket of oil and fuel exports, which presently trades above the $60 USD mark.
However, the petrocurrency has, thus far, not seen wide approval. Maduro’s critics have dismissed the move, citing that the creation of a national petrocurrency would require congressional approval, and that other pressing needs such as food and medical supply must take priority.
Maduro’s planned petrocurrency would fundamentally be an avenue to circumvent recent sanctions imposed by US President Donald Trump’s administration, which have made it far more difficult for the country’s central bank to trade through other international regulators.
Alleged white paper
An unverified copy of the white paper – purportedly leaked ahead of its official distribution by Maduro’s government – highlights some interesting mechanics behind the workings of the currency.
The paper details that 100 million PTR will be created and, like bitcoin, each petro will be divisible into 100 million parts – the smallest unit of the currency would be called a mene, with a value of 0,00000001. ‘Mene’, in wayúu – Venezuela’s second most popular language – is the word for is the word for petroleum.
Further, the Petro will be an ERC20 token, and might be tradeable on distributed exchanges.
Download the purported white paper here.
Initial Coin Offering
The purported white paper further reveals that while over 38.4% of tokens will be made available in a pre-sale starting February 20th, 44% will be available in a public sale starting one month later with varying discounts available.
Venezuelan government would accept the Petro as tender for taxes, fees, and public services, and would take the price of the barrel of the Venezuelan basket of the previous day as value with a percentage discount.
Should the Initial Coin Offering reach its capacity, over $4.944 billion USD would be raised.
Have your say!
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