Venezuela, who is going through serious problems in its economy, announced that it has raised $735 million with the pre-sale of the cryptocurrency Petro (PTR). With the announcement, the government published a manual of the buyer. The pre-sale began with an offer of 82.4 million tokens, although in December had promised to do so with 100 million units.
The cryptocurrency in Venezuela, that is backed by a part of the country’s oil reserves is, according to the government of Nicolas Maduro, first launched by a state. Other countries, such as Estonia and Dubai, have expressed interest in similar plans.
Sales and buying guide
The website of the PTR, says that the only thing that you need to get Petro is to open a digital wallet. The buyer’s manual indicates that when you open the wallet, it generates an e-mail address that may be shared with any user you want to transfer the PTR to your wallet.
Investors may learn through the manual of all the registration process, which requires that potential buyers to download a compressed installation file, which is set to self-destruct once the installation is complete.
The white paper of Petro indicates that the blockchain technology launched by the Venezuelan State has solid security mechanisms. This is consistent with what is described in the manual of the buyer, who reviews the protection of users’ private keys.
However, it prompts users to generate a public key, which is required for any type of deposits with cryptocurrencies.
In the official document PTR, we read that “The Bolivarian Republic of Venezuela guarantees that it will accept the Petro as a form of payment of taxes, fees, contributions, and services, taking as a reference the price of the barrel of the Venezuelan basket of the previous day…”
A barrel of hopes coated doubts
The Venezuelan government clings to the Petro with the hope of overcoming the difficult financial situation of the country, with lower prices and oil production in frank decay. The export of oil means the main entrance of foreign exchange into the country, which recently is being affected by economic sanctions imposed by the United States.
The success of PTR will depend in large measure on the perception of investors with respect to a centralized cryptocurrency by an intermediary, in this case, the Venezuelan government. This, because hundreds of cryptocurrencies that exist are completely decentralized. Do not belong to anybody, and are not regulated by governments, central banks or investment funds.
Another factor of trust, it is the one that has to do with mining. To undermine Bitcoin, for example, users only need to have the appropriate equipment. For PTR, according to the White Paper, that it is going to depend on whether users agree, but will always be conditioned by the decisions taken by a centralizing entity. That can make that have a lot of dependency on decisions of a political nature, which is equal to controls.
The Venezuelan government has made clear its objectives. One of them, they say, is to create a currency alternative to the dollar and a digital economy and transparent, that will help the benefit of emerging countries. This would be achieved, according to them, getting out of control exercised by the United States through the global financial system.
The administration of Nicolas Maduro has put a lot of effort in the promotion of the Petro. On Monday, the President stated that the PTR comes to strengthen the national economy, ensuring that your success will be total. The government, which must comply with new debt payments next April, is having trouble refinancing due to the sanctions imposed by the United States.
From the opposition will ensure that the Petro is illegal, and it is only an instrument to issue public debt. From the opponent remember that any debt issuance must be approved by the National Assembly, which is dominated by the opposition, but has been outlawed by the government declaring it in contempt. The criticism from Parliament, in addition to the warnings of the Department of the Treasury to all interested in investing in PTR.