Venezuela to Auction Petro at Discounted Rates Via Forex Platform

Mar 08, 2018 at 9:47

Venezuelan Vice President Tareck El Aissami said that the country’s oil-backed cryptocurrency, Petro will be auctioned to private companies using the country’s Dicom foreign exchange platform.

Speaking at a meeting broadcast on state television, he also stated that the Petro will be auctioned in a few weeks and companies will be able to use the country’s oil-backed cryptocurrency to pay for imports of raw materials.

Dicom serves as the venue wherein the Venezuelan government auctions foreign currency. The platform which currently has 580,000 users enable them to participate in the system, after they register on it and hold an account denominated in foreign currency at a bank authorized to operate in Venezuela.

Furthermore, El Aissami urged local banks to buy Petro at a discounted rate that will last until March 20 noting that it may be purchased with dollars, euros and other currencies as it may be held by banks as assets.

“The Petro is going to be our powerful international currency, above the dollar,” he claimed.

It can be recalled that Petro was launched by Venezuela to bypass United States sanctions as it is experiencing one of the deepest recessions in history.

The country’s President, Nicolás Maduro also claimed before that token sale already received over 171,000 pre-registrations, and already netted over $735 million. However, Venezuela’s Congress run by the opposition, said that the Petro token sale is an illegal and unconstitutional instrument to mortgage its oil reserves.

The country’s National Assembly also denounced the cryptocurrency as a fraud, and a threat to potential investors.

On the other hand, Chinese credit giant Dagong explained that Petro may help the global currency system.

Earlier this week, Cambodia expressed that it may follow Venezuela’s move and launch its own cryptocurrency program that will be called Entapay.