Venezuela’s president Nicolas Maduro has declared petro, the state-owned Cryptocurrency a national currency. The president claimed the coin is already listed in 6 exchanges although he didn’t name any. The government has also published a new whitepaper that shows the altcoin is backed by oil and other minerals in the country. Venezuelans will be able to buy the Crypto on November 5.
Petro Has Been Declared A National Currency
Venezuelans now have another national currency, petro. While launching the Cryptocurrency as a national currency on Monday, President Nicolas Maduro also claimed the coin is already listed in the world’s six topmost exchanges. Petro was launched in February as an oil-backed coin to help the country circumvent the economic sanctions imposed by America and its close allies.
In a televised address, President Maduro said that the country has made history. He added that the new national currency will help the country strengthen its financial sovereignty. Telesur TV covered the launch. The media house also quoted the president saying that the new coin is not mined like the other Cryptocurrencies as it derives its value from the country’s mineral wealth.
A New Whitepaper Out
After the launch of petro as a national currency, the government proceeded to publish a new white paper for the coin. According to the new document, for Proof of Stake verification, the coin uses the masternode system while Dash’s X11 mining algorithm will be used for Proof of Work. The coin heavily borrows the concepts Bitcoin and Dash.
Petro is no longer backed by the country’s oil reserve only. According to the whitepaper, other minerals are used in different proportions. Petro is now backed by oil 50 percent while gold and iron reserves will back 20 percent each. The remaining 10 percent backing will come from the diamond. The new move is expected to boost the value of the virtual currency.
While speaking on Telesur TV, President Maduro said the coin is now listed in 6 top international Cryptocurrency exchanges. However, he did not name any exchange during the event. He added that the new currency would enable the Venezuelans to use it for international purchases. The President said the petro could now be used in place of dollars in areas such as real estate, hotels, airline tickets among other activities.
The news outlet also quoted government officials saying the new national currency will help in “neutralizing” the black market and other threats presented by money mafias in the country. According to Foreign Minister Jorge Arreaza, the money mafias are partly to blame for the deteriorating value of the Venezuelan bolivar.
Venezuelans To Purchase Petro In November
The government has introduced various measures to control the current economic crisis in the country including launching another currency named the sovereign bolivar. According to AVN state news agency, each petro will cost 3,600 sovereign bolivars. It will be used to purchase various products and services in the country.
President Maduro said the locals will be able to purchase the new coin from November 5. Venezuela was the first country to introduce a national Cryptocurrency in the world. The government is working hard to ensure the virtual currency achieves its goal.