Hyperinflated Venezuela To Host Petro Cryptocurrency Presale on February 20

Petro cryptocurrency presale
Petro cryptocurrency presale

Hyperinflated Venezuela To Host Petro Cryptocurrency Presale on February 20

The Tuesday’s Petro cryptocurrency presale is going to have an international reach including the US, Europe, and the Middle East, as per the Venezuelan official. Two months ago, Venezuelan president Nicolas Maduro announced the creation of a new oil-backed national digital currency known as Petro to fight off the effects of the US-led sanctions and Venezuela inflation.

President Maduro aims to attract foreign investors by petro cryptocurrency

In December, just two months back, Venezuela’s president Nicolas Maduro announced his plans to introduce the country’s first cryptocurrency “El petro” that will be state-controlled and oil-backed. Recently, it has been reported by Carlos Vargas, the cryptocurrency regulator of the country that Venezuela Cryptocurrency Petro will attract the investments from all over the world viz US, Europe, Qatar, and Turkey.

Carlos Vargas the Venezuelan cryptocurrency Superintendent, has been reportedly quoted as saying:

“On Tuesday, there will be quite a few announcements about the start of the process. And there will surely be a lot of investors from Qatar, Turkey, and other parts of the Middle East, though Europeans and Americans will also participate.”

However, no further claims have been made by Vargas regarding the same.

A move to combat Venezuela inflation & buck Petro dollar

According to the media sources, US investors will be part of the interested investors in participating the Petro presale, that is scheduled for February 20. However, some believe that the concerns about the financial solvency of Venezuela are most likely to limit the interests of the investors. Moreover, the US Treasury Department has already warned that Petro might violate the sanctions against the OPEC nations.

Last year, Washington levied these sanctions that basically blocks US investors and banks from acquiring Venezuelan debt. This, in turn, prevents the country from borrowing to refinance the existing debt or bring new hard currency.

The cryptocurrency Petro will be up for pre-sale Tomorrow i.e February 20. This move comes amid Venezuela’s fight against severe inflation and chronic shortages of medicine and food.

Venezuela economic crisis is one of worst in decades

Maduro has repeatedly emphasized that Venezuela is the victim of an economic war that is prompted by the financial sanctions imposed on it by the US. And the introduction of a new digital currency will help the country circumvent this issue. Petro is basically Maduro’s way to combat the hyperinflation rampant in the country and to evade the US imposed sanctions.

The Superintendence of Cryptocurrencies and Related Activities along with Blockchain Observatory will regulate the, 5 billions barrels of oil reserves backed Petro.

The prices of crypto petro dollar has already surged since the public release of this news.

What are your views on Venezuela cryptocurrency Petro? Do you think other countries will invest in this national digital currency?  Let us know in our comment section below!

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Casper Brown 167 Articles

I am an associate content producer for the news section of Coingape. I have previously worked as a freelancer for numerous sites and have covered a dynamic range of topics from sports, finance to economics and politics.

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