Venezuela Unveils New Cryptocurrency

Venezuela Unveils New Cryptocurrency

"I'm disappointed that no type of constructive criticism is allowed, and also the fact that some comrades who know me well are victims of the right-wing's manipulations", he wrote in an essay titled "Stepping Firmly: Is it ethical to remain silent?" published Sunday on the Aporrea website, a forum for Venezuelan leftists.

"Venezuela will create a cryptocurrency", Venezuelan President Nicolas Maduro said on Sunday, according to Reuters. If every Venezuelan had invested his or her gross 2009 income of $11,500 into bitcoin, the investment would have been worth about $8.4 billion in May this year - per person. "The 21 century has arrived", he added to loud cheers on his weekly live broadcast.

Petro, the regime's new cryptocurrency, will be backed and managed by an authoritarian state that has destroyed its economy.

"This will allow us to reach new means of international credit for the country's economic and social development".

To get the project off the ground, the government has put together a "multidisciplinary" team of specialists in technology, economy and finance, law and currencies, among others.

"I have thoroughly studied this issue, and I want to announce that Venezuela is going to roll out a new cryptocurrency system based on its oil reserves".

The country's existing currency, the Bolivar, has plummeted in value over the last few years because the fall in the world oil price has sent Venezuela's revenues crashing down.

The details of the proposal remained sketchy and it is uncertain to what extent the Venezuelan government has finalized preparations for the launch of a cryptocurrency.

With the Petro, Maduro claims his regime can bypass the "economic war" being waged by these countries. "They embody individualism, hatred, intolerance, sectarianism, treason, corruption, looting, and black-marketeering", he said, describing all opposition leaders as being cut from the same cloth and as "puppets of (US President) Trump" who take orders from the US Embassy.

Is Venezuela the first country to experiment with cryptocurrencies? . Many Venezuelans are struggling to meet basic needs - what good is a digital currency if it still leaves you starving? It will be called The Petro. The move would need congressional approval (provided Maduro doesn't find a way to act unilaterally).