Petro as the ‘Digital Currency for Oil’- A bold suggestion is being made by Venezuela to Recommend Petro As ‘Main Digital Currency Backed By Oil’ to OPEC! Venezuela’s Minister of Petroleum and the president of the nation’s oil company PDVSA, Manuel Quevedo, announced via Twitter that the Petro would be presented to the Organization of the Petroleum Exporting Countries (OPEC) as “the main digital currency backed by oil” while explaining the strategic benefits that the Petro will have.

Quevedo claimed:

“Petro will become the digital currency of oil transactions worldwide; we will present it to OPEC, it is one of the internationalization measures of the currency.”

Incidentally, the next scheduled meeting of OPEC members takes place in Vienna, Austria on December 6, therefore Venezuela’s proposition is very timely.

The Venezuelan government remains rock solid in its decision to position Petro as an internationally recognized cryptocurrency, and although up to now the results have not been particularly remarkable, the government seems to be working hard on the consolidation of Venezuela as a crypto-nation.

Petro Positioning

Quevedo asserted there were already projects underway for the sale of Venezuelan oil for Petro on various trading floors.  He also admitted that the national cryptocurrency is a key component of the Venezuelan government’s efforts. Which is to bring about economic recovery to the inflation-ravaged South American nation.

Organizations interested in Venezuelan oil products have been asked to onboard the country’s national cryptocurrency platform. Quevedo has reportedly summoned airlines and shipping companies to register for a digital wallet to transact in Petro.

“The fuel for planes, ships and cargos will be sold in Petro. It is the currency of Venezuela,” he was quoted as saying by Chinese news agency Xinhuanet.

Petro was launched in February this year and concerned authorities suggested that it amassed a huge $735 million on the first day of sale, although it’s unclear who the buyers were. Speculations are that the Venezuelan ally, Russia, bought a substantial amount of the cryptocurrency during the initial stage. Incidentally, both nations are currently the target of economic sanctions largely at the expense of the United States. Some skeptics believe that it appears that evading sanctions is one of the key objectives. Which the Venezuelan administration have in mind when it comes to the Petro.

National Currency

Petro as the ‘Digital Currency for Oil’-Earlier In August, Venezuela remodeled its national currency and replaced it with the Sovereign Bolivar. The government instructed that the Petro be regarded as the official unit of account within the country.

October saw a change in state processes relative to the issuing of passports within the South American economic crisis hit the nation.  This policy set out that citizens could only get a passport issued or renewed. If they paid the passport fee in Petro cryptocurrency.  It’s understood that the objective of this move was two-fold:

  1. In the first instance, the administration wanted to make it more difficult for Venezuelan’s to leave the country. Which is a backdrop of the greatest mass migration in South America in recent years.  
  2. Secondly, it was motivated by a desire to induce further take-up and active use of the state cryptocurrency.

The Sale Of Petro

More recently, six cryptocurrency exchanges have been authorized to trade the cryptocurrency within Venezuela.  The digital currency is also available through Sunacrip – The National Superintendency of Crypto-assets and Related Activities.  This sale of Petro in exchange for other cryptocurrencies and FIAT began on October 29, 2018.

Last month, Venezuelan President Nicolas Maduro announced that in the near future, workers bonuses will be denominated in or based upon the Petro.  He also encouraged citizens to place their savings in the national cryptocurrency. In line with that policy, on Monday Venezuela’s Minister of Industries and National Production, Tareck El Aissami announced a savings and investment plan which will be based on the Petro.

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