Venezuela’s President, Nicolas Maduro, is looking to launch a new cryptocurrency called Petro. The cryptocurrency will be backed by the oil and gold wealth of the nation, along with its vast mineral resources.
Speaking at a summit of ALBA-TCP countries, Maduro said:
“I have a proposal for the economic teams of the ALBA: to assume jointly the creation of an oil-backed Petro cryptocurrency, which will be supported with Venezuelan oil, and that very soon we will sustain with the wealth of Venezuela’s gold and diamonds,”
Maduro says that the new cryptocurrency will essentially be used to overcome the financial blockade on Venezuela partially caused by the latest US sanctions. Maduro explained that the reason for taking this initiative was “to advance the country’s monetary sovereignty, to carry out financial transactions and to defeat the financial blockade against the country.”
The plan to introduce “Petro” was first announced in December, and now they look to move forward with the plan.
Maduro also urged other South American and Carribean nations to join the initiative during the summit of ALBA-TCP countries.
Venezuela’s economy has suffered heavily since 2016, with its currency seeing a 100% depreciation against the dollar, with no sign of recovery.
Featured Image Credits: Reuters