Venezuela Halts Petro Cryptocurrency, Reports Confirm

• Venezuela Concludes its Petro Cryptocurrency After Five Years
• The Petro's Inception and Purpose
• The Petro Amid Controversies and Criticisms
• The End of Petro

Venezuela Concludes its Petro Cryptocurrency After Five Years

Venezuela has announced the cessation of its Petro cryptocurrency on Monday, after being in operation for more than half a decade. This development was reported extensively, with sources quoting a notification that appeared on the Patria Platform, the exclusive trading platform for the Petro.

The Petro's Inception and Purpose

In February 2018, President Nicolas Maduro introduced the Petro (PTR) as a means of bolstering the country's native currency, the bolívar. This move came in response to an economic crisis that had worsened due to U.S. sanctions. The Petro, anchored by the country's abundant oil reserves, sparked controversy even before its official launch.

The Petro Amid Controversies and Criticisms

The nation's opposition-controlled congress made allegations that it was unlawful to take loans against oil reserves. In addition, in 2019, U.S. authorities penalized a Russian bank for funding the Petro. Despite the controversies, the Venezuelan government made several efforts to interweave the Petro with various services. It, for instance, necessitated obtaining passports to support a social housing initiative and linked the minimum wage to the Petro by 50%.

The End of Petro

Any residual petros are presently being transformed into bolivars, the local currency facing economic hardships. The final blow for the Petro came in the form of a corruption scandal that revolved around financial irregularities concerning the use of crypto assets for oil operations. This scandal led to the resignation of the petroleum minister Tareck El Aissami and a stringent regulation on bitcoin mining operations, as per reports from AFP.

Unfortunately, the Venezuelan government has been uncontactable for comments regarding the matter.

Edited by Jonathan Stoker