The Petro, or Petromoneda, is a new crypto currency issued by Venezuela, reportedly backed up by the oil and mineral reserves within that country. President Nicolas Maduro announced the offering would make available to the country better international financing. This is greatly needed as the country of Venezuela is currently in an economic crisis. The plan is to issue 100 million coins of Petro valued at approximately six billion.
Petros are “pre-mined” by the Venezuelan government and new tokens cannot be created after the issuance. The price of the Petro is up to the government of Venezuela based on their interpretation of the value of the backing minerals and oil reserves. Right now, only the government can buy Petros, and only citizens of Venezuela can spend them, and only for the purpose of paying taxes and other fees owed to the government.
Seeing this soon-to-be offering to the world of the Petro, US President Donald Trump issued an executive order prohibiting any U.S. citizen or anyone within the United States from any transactions using the Venezuelan Petro. President Trump believes that the offering of Petros is Maduro’s attempt to get around sanctions the U.S. has against Venezuela.
Venezuela’s National Assembly has declared the Petro to be an illegal debt issuance by a government desperate for a cash grab. That’s why only foreigners will be able to buy Petros and only Venezuelans will be able to spend them. The Petro serves no other purpose than to create revenue for the government. It is highly unlikely this venture will be successful.
It might be possible that the Petro would be tradeable for other “real-world” crypto currencies, such as Bitcoin or Monero, thereby making it spendable in modern stores or websites. My suggestion? Hit up Bitcoin Casino and potentially go double or triple your currency! With all the dips and rises seen in the crypto markets recently, make it and spend it while you can!