Venezuela Claims to Receive As Much As 171,000 Intents for Petro Cryptocurrency

Feb 28, 2018 at 14:15

Venezuelan president, Nicolas Maduro claims that the initial coin offering (ICO) presale for the state-backed Petro cryptocurrency received as much as 171,000 intents to contribute from individuals and companies alike.

He made the announcement through the official presidential Twitter account. Maduro noted that 40.8 percent of contributors intend to complete the transaction with US Dollar, while another 6.5 percent will make their purchase with Euro. Meanwhile, 33.8 percent pledged through Bitcoin and another 18.4 percent used Ethereum.

Maduro however did not disclose the medium that was used by the remaining 0.5 percent but emphasized that 3,523 companies already registered to buy the Petro.

Likewise, the Venezuelan government also did not explain the absence of intents that will use the local currency, Bolivar which is now hyper inflated and on the brink of collapse.

The virtual currency that will be backed by Venezuela’s oil reserves has been fraught with difficulties as analysts are also skeptical on the government claims that the ICO presale raised $735 million in its first day.

Another factor that raises suspicions from analysts is the fact that Venezuela has yet to publicly name any of the contributors and the government has yet to distribute any of the 100 million Petro tokens available in the presale.

As early as now, Venezuela already announced its intentions to launch a second state-backed cryptocurrency that will be called Petro Gold but further details are yet to be released by the government.

The United States warned before that buying the petro virtual currency could violate sanctions against Venezuela, which prohibit the purchase of newly issued Venezuelan debt.

Aside from Venezuela, several other countries facing international sanctions have also considered adopting government-sponsored cryptocurrencies as well. Russia is planning to launch a CryptoRuble while both Iran and Turkey have discussed similar plans.