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Venezuela to launch 'petro gold' cryptocurrency backed by gold -Maduro

Venezuela to launch 'petro gold' cryptocurrency backed by gold -Maduro

The sanctions sent the already crippled Venezuelan economy spiralling even further - inflation soared, food shortages worsened and the value of the bolivar to the United States dollar plunged. There is little doubt that Venezuela is desperately attempting to raise funds rather than introduce a novel concept to the crypto market through a digital currency with a hard commodity backing it. The president has said multiple times in the past that the country's cryptocurrency will enable it to circumvent Western sanctions.

The President of Venezuela, Nicolas Maduro has taken this step with the hope that it will allow the ailing OPEC nation to ignore the US sanctions.

As Bitcoin mania took over the world, governments the world over considered launching their own digital currencies.

Maduro made this comment about the Petro: "a cryptocurrency is being born that can take on Superman".

Maduro is hoping the petro will allow the ailing OPEC member to skirt USA sanctions as the bolivar currency plunges to record lows and it struggles with hyperinflation and a collapsing socialist economy.

This cryptocurrency is backed by a federal government.

"The new cryptocurrency will be backed by reserves of Venezuelan wealth in gold, oil, gas, and diamonds".

Maduro has touted the petro as fulfilling the late Hugo Chavez's dream of upending global capitalism away from the dominance of the USA dollar and Wall Street. The US Treasury Department has warned it may violate sanctions levied a year ago. The establishment outlined its expectations, as well as, plans for the petro in its web portal meant for the virtual currency hosted by Ministerio del Poder Popular para Education Universitaria Ciencia, Technologia, coindesk.com reported.

Last week the Venezuelan Cryptocurrency Superintendent Carlos Vargas said they were hoping to attract investors from Qatar, Turkey, the Middle East, Europe and the USA. The cost of all 100 million tokens would be slightly over 6 billion Dollars, according to data provided by Nicolas Maduro in recent months, although no new price information was provided.

However, no new price information was supplied on Tuesday.

Hugbel Roa, the Minister of Popular Power for University Education, Science and Technology, said that each Petro will be equivalent to one barrel of oil, according to the fixed price of the Venezuelan basket in the global market. The sanctions will also outlaw businesses that deal with the Venezuelan president Mr. This prevents the country from borrowing overseas so that it can bring in new hard currency or refinance existing debt.