Maduro's oil backed cryptocurrency rejected by Venezuela's parliament

posted 10 days ago
Venezuela’s opposition-run parliament on Tuesday outlawed a “petro” cryptocurrency promoted by socialist President Nicolas Maduro, calling it an effort to illegally mortgage the cash-strapped country’s oil reserves.

Maduro on Friday said his government would issue nearly $6 billion of petros as a way to raise hard currency and to evade financial sanctions imposed by Washington.

Cryptocurrency experts say Venezuela’s mismanagement of its own economy, combined with the ruling Socialist Party’s historic lack of respect for private property rights, will likely leave investors uninterested in acquiring petros.

“This is not a cryptocurrency, this is a forward sale of Venezuelan oil,” said legislator Jorge Millan. “It is tailor-made for corruption.”

Maduro has routinely ignored the legislature since his party lost control of it in 2016, and the pro-government Supreme Court has shot down nearly every measure passed since then.

Maduro hopes it will serve as a payment mechanism for foreign suppliers and avoid the payments delays that have grown more acute since the sanctions went into place.
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