Government cryptocurrency is coming, whether we want it to or not. On the 28th of December in Caracas, Venezeual’s Information Minister Jorge Rodriguez said: “It is a matter of days before we announce the first issuance of the ‘petro’ cryptocurrency.” Information Minister Jorge Rodriguez said these words at a press conference regarding ‘Petro’, broadcast on state TV Thursday.
Early in December, Venezuelan President Nicolas Maduro announced that Venezuela would be issuing their own cryptocurrency in order to circumvent U.S.-led financial sanctions.
According to Rodriguez on Thursday, the Petro will help Venezuela face the increasing international diplomatic opposition regarding President Nicolas Maduro’s crackdown on any political opposition at home. Rodrigues also hopes the Petro will help him skirt sanctions or attacks on Venezuela from the international financial system at large. “It will allow us to overcome any financial blockade.” He said.
Not the first announced government cryptocurrency, but Petro could possibly be the first to market
While not the first announcement of a government-issued cryptocurrency, nor nearly the first time that government has meddled in crypto, the Petro is the first cryptocurrency to be backed by physical assets. Maduro stated on Wednesday that more than 5 billion barrels of Venezuelan oil will serve as the backing for the cryptocurrency. This oil should be able to back around $267 billion worth of currency, compared to the Bitcoin’s current market cap of $247 billion.
While he didn’t give any further details on mining or how this would be secured or “decentralized,” Rodriguez did say that miners were already lined up. Needless to say, we’re eager to find out how this government cryptocurrency will function.