The Venezuelan government on Tuesday activated the pre-sale of’ petroleum’, a state cryptocurrency that will be backed by 5,342 million barrels of crude oil and seeks to generate, according to the head of state, Nicolas Maduro, a “fairer financial system. The presale of this cryptocurrency reached 596 million euros since its activation.
Analysts point out that the launch seeks to avoid the international restrictions faced by the country and the difficulties of financing itself in the markets.
Backed by 5,342 million barrels of crude oil and with a price subject to the value of the Venezuelan barrel, which in recent days has fluctuated around 60 dollars, Chavismo reported that 100 million units will be issued. Some 82.4 million are already available for pre-sale. The issue could be extended to 100 billion units if the government orders.
The first country with its own cryptocurrency
Of the 82.4 million units available, 44% will be offered in a private pre-sale and in the initial public offering, while 38.4% will remain for private sale and the remaining 17.6% will be retained by a public body -the Superintendency of Currency and Related Activities of Venezuela-, according to the Venezuelan state news agency, Agencia Venezolana de Noticias (AVN).
Venezuela is at the forefront of future times (…) Today will become a day of history. It is the first state, the first nation to launch its cryptocurrency, backed by its reserves and natural wealth,” said the Venezuelan vice-president Tareck El Aissami.
The government activated a web page to guide all natural or legal persons, national or foreign, in the steps to follow for the acquisition of digital currency. AVN also reported that Internet traffic on this website increased fivefold during the day, which has caused some delays in accessing the portal.
According to Maduro, the government signed two agreements, with a Russian and a Venezuelan company, related to the support and security of the technological platform where the sales will take place.
The Parliament, with an opposing majority, has declared the decree of petroleum emission null and void because he claims, it is an “illegal” currency that violates the Constitution.
It forces the oil companies to use it
To encourage its official use, Maduro ordered the state-owned companies Petróleos de Venezuela (Pdvsa), Pequiven and Corporación venezolana de Guayana (CVG) to make a percentage of their sales and purchases in’ petros’.
In another series of agreements, the Executive has approved that the crypto monitoring systems serve as a means of payment for a wide range of services, such as fuel and the performance of airlines. In addition, virtual currencies may be used to pay at consulates and national embassies.