Venezuela Petro cryptocurrency has gained massive traction not only in the country but also across the globe. The country is optimistic that the digital currency will resolve inflation. President Maduro yesterday announced that the country will stop using U.S dollar and start using Petro token for all oil related purchases.
Petro Cryptocurrency to Be Used for Oil Purchases
As noted by many cryptocurrency news outlets, the president is of the idea that the decision to stop using the United States dollar for oil purchases will reduce dollar dominance in the industry. The introduction of Petro token into the oil industry will further boost its adoption and diversify the global market.
In his statement, President Maduro stated that his team has a plan to have oil sold in Petro as a way of freeing the country from a currency that the elite of Washington uses. He also stated that a six-year financial plan will be implemented to resolve the crippling impact that the U.S led sanctions have on the economy of Venezuela.
One of the facets of this financial plan is to set up a trading platform that will allow traders to exchange Petro with a wide range of other digital and fiat currencies. Notably, this announcement was made a few days after meeting President Vladimir Putin in Moscow, Russia.
President Maduro also stated that Russia has already implemented a similar plan-its currently using Chinese Yuan to trade oil and other related products. He hopes that Venezuela can do the same and avoid using the United States dollar completely.
It is also important to note that the current minister of petroleum in Venezuela and the president of PDVSA, a state-owned oil company) recently announced that they will be presenting Petro as the primary cryptocurrency in the world that is backed by oil. The presentation will be made in the Organization of the Petroleum Exporting Countries (OPEC) meeting that is scheduled for 2019.
The Launch of Venezuela Petro Cryptocurrency
Venezuela Petro cryptocurrency was launched in February in a widely marketed pre-sale period. Shortly after the launch, President Maduro announced his full support for the cryptocurrency and integrated it into the country’s economy.
However, the cryptocurrency was made available to thousands of Venezuelans through the government portal in October 2018. In a move to further promote adoption, the government announced that anyone planning to apply for a passport should pay the application fees using Petro token. In July, the cryptocurrency was pegged with the country’s fiat currency bolivar.