• 4 minutes China's Economy and Subsequent Energy Demand To Decelerate Sharply Through 2024
  • 7 minutes Beijing Must Face Reality That Taiwan is Independent
  • 11 minutes Phase One trade deal, for China it is all about technology war
  • 14 minutes Shale Oil Fiasco
  • 30 mins We're freezing! Isn't it great? The carbon tax must be working!
  • 2 hours Which emissions are worse?: Cows vs. Keystone Pipeline
  • 10 hours Trump capitulated
  • 17 hours Thanks to Trump, the Iranian Mullahs Are Going Bankrupt
  • 1 hour Indonesia Stands Up to China. Will Japan Help?
  • 3 hours What's the Endgame Here?
  • 45 mins Trump has changed into a World Leader
  • 3 hours Turkey Muscles-In on Israel-Greece-Cyprus EastMed Gas Pipeline Deal. Erdogan Still Dreaming of Ottoman Empire II.
  • 10 hours US Shale: Technology
  • 11 hours Gravity is a scam!
  • 1 day Yet another Petroteq debt for equity deal
  • 1 day Three oil pipeline projects inch toward goal-line for Canada
  • 1 day The Libyan Oil in a Sea of Chaos, War and Disruptions
Alt Text

Venezuela Crisis Deepens As The World Take Sides

Venezuela’s political crisis is deepening…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Venezuela Rakes In $735 Million From El Petro Proceeds

Venezuela said it had generated US$735 million from the pre-sale of its cryptocurrency backed by crude oil. President Nicolas Maduro saw cryptocurrency sales as a way around Venezuela’s severe cash shortage resulting from U.S. sanctions and dropping crude oil production and prices.

The government has issued a buyer’s manual for El Petro, confirming those willing to buy some of the oil-backed cryptocurrency can use either hard currency or other cryptocurrencies. Both Venezuelan nationals and foreigners are welcome to buy Petros. Bitcoin.com, however, notes that no prices were displayed on the Etherdelta platform that Caracas is using for order placements and no orders have been matched. This, the website points out, could be the result of a technical glitch.

The pre-sale offering involved 82.4 million Petro tokens, and according to Venezuela’s Minister for University Education, Science, and Technology, traffic to the website where the tokens are sold jumped fivefold shortly after midnight Venezuelan time.

In early December, Maduro shocked analysts who follow both the country’s flirtations with default and the cryptocurrency community by announcing that Venezuela would launch the Petro cryptocurrency, backed by oil, diamonds, and gold reserves, to help the country to “advance in issues of monetary sovereignty, to make financial transactions and overcome the financial blockade.” Related: 5 Record Breaking Gemstones Even Billionaires Can’t Buy

Last month, Maduro said that the 5 billion barrels of oil reserves at the Ayacucho block 1 in Venezuela’s Orinoco Belt would back the cryptocurrency. The Petro, which Venezuela touts as the first cryptocurrency issued by a country, is promoted as a means to “boost monetary sovereignty”, while many analysts think it is just a desperate attempt to skirt U.S. financial sanctions.

Analysts also think that the Petro won’t bring real benefits either to Venezuela’s ravaged economy or to its people who suffer from shortages of basic necessities amid a hyperinflation expected at 13,000 percent this year by the IMF.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage




Leave a comment
  • RefCor on February 21 2018 said:
    What is the old saying: “a fool and his money are easily parted”. Ah well,

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News