Venezuela will start selling Oil for Petro, state cryptocurrency

Venezuela government-based Petro cryptocurrency will be activated soon to the public. The cryptocurrency by the government launched the token in February 2017 that would be backed by Venezuela’s reserves of oil, gasoline, gold, and diamonds.

The Petromoneda or Petro, a token based on the NEM blockchain which will be used to sale and purchase of crude oil from March 2019. This initiative will allow the government to sell oil in exchange for petros and bypass US-imposed sanctions at the same time.

President Nicolás Maduro stated on Thursday that the goal of the measure is to diversify the international market including embracing new forms of payment through cryptocurrencies from allied countries while reducing reliance on the US dollar. Maduro said (according to a rough translation), “In 2019 we are scheduled to sell crude oil for Petro and in this way continue to free us from a currency that the elite of Washington uses.”

Venezuela will start sell Oil for Petro

He further pointed out that the measure would increase the national revenue and foreign trade through a basket of currencies and a six-year plan aimed at offsetting the impacts of US trade sanctions. Venezuela is not the only country to look to cryptocurrencies as a legal loophole to bypass US sanctions, with Iranian officials openly stating their interest in using digital currencies for this purpose.

Maduro said, “It is necessary to promote a balanced, fair and diverse monetary system, in which the dollar enters as an exchange currency, but which is not used as a political mechanism.”

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