Bitcoin Forum

Venezuela's New Petro-Backed National Currency to Start Circulating in August

The president of Venezuela Nicolás Maduro has announced that the country’s new cryptocurrency-backed national currency will start circulating August 20, local state news agency Telesur (https://www.telesurtv.net/english/news/Venezuelas-New-Currency-Will-Start-Circulating-on-August-20-20180725-0030.html) reported July 25.

Telesur reports that the new currency, the Bolívar Soberano (Sovereign Bolivar), will have five zeros less than the existing national currency Bolivar Fuerte (VEF) and will be anchored to the oil-backed Petro (PTR) digital currency. The Petro was launched (https://cointelegraph.com/news/petro-ignited-venezuela-launches-pre-sale-of-oil-backed-national-cryptocurrency) by the government of Venezuela this February.

Maduro noted that the measure intends to align the financial and monetary system in the country “in a radical manner,” stating that the reconversion and anchoring to Petro is a “great hope" for developing a “productive, diversified and sustainable economic model.”

The president also said that the measure can help with inflation, shortage of cash, as well as mitigate the long lines at ATMs that have become routine for Venezuelans.

Maduro expressed continued confidence in the Petro, declaring that the state-backed digital currency “will end up being consolidated technologically and financially” and will embrace “all the national and international economic activity.”

Meanwhile, the reconversion has been criticized by a number of financial experts, with economist Maxim Ross claiming that the measure “does not solve anything,” Local 10 News reported (https://www.local10.com/espanol/noticias/venezuela/maduro-to-launch-sovereign-bolivar-in-june) in March.  

Opposition legislator and economist Angel Alvarado also spoke critically of the move, telling CNBC that “taking zeroes off the money doesn't fix a thing,” and it won’t actually combat inflation in the economy.

In late 2016, Cointelegraph reported that the Venezuelan bolívar had suffered a sharp decline in value amidst high inflation, which reportedly pushed Venezuelans to start buying Bitcoin (BTC).

Recently, the Venezuelan government has initiated a number of social projects funded by the Petro. Earlier in July, The Ministry of Habitat and Housing revealed (https://cointelegraph.com/news/venezuela-to-fund-housing-for-homeless-with-national-cryptocurrency-petro) plans to initiate a housing construction program for the homeless, funded by the Petro. In May, president Maduro announced (https://cointelegraph.com/news/venezuelan-president-announces-petro-fuelled-crypto-bank-for-youth-initiatives) the launch of a Petro-funded crypto bank to support youth and student initiatives.

Source: https://cointelegraph.com/news/venezuela-s-new-petro-backed-national-currency-to-start-circulating-in-august

There is no possibility of using this currency in international trade. Therefore I don't expect Petro to be very successful because the country is under an embargo. Let's see how the Venezuelan crypto experience will result.

There's a shitload that doesn't add up about this. I can't find any evidence that this actually exists in any form. No mention of wallets, no visible blockchain, no preparations, no mention of integration with existing infrastructure.

There was talk of a presale but no evidence it actually took place.

It's also seemingly based on the NEM blockchain which is artificially capped at 2 TPS so it's not as if it could ever be for everyday use by a large number of people. I guess it'll be some sort of financial instrument rather than a usable currency for the masses. All the same I'll believe it when I see it.

I wait for Petro Oro

Embargoes and sanctions don't work in the crypto world. You can prevent people from investing in cryptocurrencies, if the people use traditional channels of finance. But if I want to exchange my cryptos for petros, nobody can stop me.
I think this currency will fail, but it is due to completely different reasons. Nobody can trust the Venezuelan government. All the oil assets backing the Petro can be expropriated very easily.

It does exist, its just never been distributed. Its called ve:ptr and there's 100,000,000.

http://explorer.nemchina.com/?#/s_account?account=NC2LEUTTZVOZLP6TBZSZFWTFR3MQ7O3LXZYXRRM4

There is also a wallet which is the NEM wallet rejiggered to display primary balances in PTR. You can download it from the project homepage:

http://www.elpetro.gob.ve/index-en.html

The website says they reached their funding goal, which would mean they raised about $5 billion, making this the biggest ICO ever, however if you look at who actually contributed and has received their placeholder token, actual funds raised was less than $300,000. The process was incredibly non-transparent and the people in charge seem to understand nothing about cryptocurrency.

What the Venezuelan government doesn't mention is that they set the exchange rate for both the bolivar and the petro, which will open up massive black market opportunities for both currencies going forward.

All in all, it simply looks like a fundraising ploy by the government with no real substance, but we'll have to wait until after August 20th to know for sure.

Why would people trust government controlled Crypto currencies, more than Fiat currencies? The only reason why this currency was developed, was for their government to bypass US sanctions, because they know the US cannot control or stop decentralized Crypto currencies.

The latest trend, seem to be Asset backed Crypto currencies, but the question is, who controls the assets?  >:( >:( >:(

The people in Venezuela, should seriously reconsider, if they want the same government that destroyed their local currency to control their local GovCoin.  ::)

Beats me. The whole reason bitcoin was invented was to circumvent government control.


The funny thing about the oil "backing" this coin is that it hasn't even been dug out of the ground yet, and its only hypothesized that its actually there.

You're right. The wallet is now on the Play store - https://play.google.com/store/apps/details?id=com.isarq.ptrwallet

And you're also right. I still don't understand anything about any of it and nor do they. The pres was talking about ordering people to mine it which as we all know can't be done.

Exactly, and this is actual proof that this is just another reason why you should never trust these so-called GovCoins. I think Satoshi must cringe when he/she sees what these governments are doing with his/her invention.  :(

I think the Venezuelan people are better off using the fiat currencies, than these fake Petro currencies, because it is absolutely worthless to back a currency with oil that they will never see in their lifetime.  ::)

The only problem is their own currency, the bolivar, is essentially worthless, and the government dictates exchange rates for other fiat currencies. They're pretty much fucked.

This is in anyways a dead currency because of the malintent which is behind the crypto adoption by this state. Its better they mend their ways first and then think of entering this ecosystem. Blockchain tech is what they should have faith in, their government must promote blockchain first and later this crypto realm will follow them just like malta and estonia are doing.