• 4 minutes Blackouts in Australia
  • 7 minutes Big Oil Costs Can't Go Much Lower
  • 14 minutes The moves toward 'zero-manning' in oil & gas
  • 8 hours Jan's Electric bike replaces electric cars
  • 16 hours gas lines set 70 houses on fire simultaneously in Massachusetts, live now.
  • 22 hours Tesla Will Fix Its Cars In-House
  • 2 hours Funding Secured: Saudi Wealth Fund to Invest $1 Billion in Tesla's RIval Lucid to build its EV factory
  • 1 day Meeting For Better Peninsula: Kim Jong Un Will Meet Moon Jae In Pyongyang
  • 17 hours 100% Renewables will Fuel the Growth of Poverty and Homelessness
  • 1 day Coca-Cola eyes cannabis
  • 7 hours Bezos Rips Trump For ‘Dangerous’ Attacks on The Media
  • 1 hour Making Safe Nuclear Power from Thorium
  • 1 day Taller Is Better: A Race for Windmills
  • 12 hours Senate cancels postal service hearing
  • 15 hours Germany Should have Gone with Nuclear
  • 1 day Oil Higher As U.S. Iran Sanctions Raise Supply Concerns
Zainab Calcuttawala

Zainab Calcuttawala

Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on…

More Info

Maduro To Issue First 100 Million Petros Despite Skeptics

Maduro

Venezuelan President Nicolas Maduro said that he ordered the first 100 million units of its new oil-backed Petro—Venezuela’s cryptocurrency creation. Each Petro unit will be backed by one barrel of oil, and the 100 million units, at current value of $59.07 per barrel, should be worth almost US$6 billion.

While this sounds good on paper, the move is largely seen as a fanciful idea by analysts, and opposition politicians have said of the project that it is doomed to fail, according to Reuters. A lack of rule of law and falling production are unlikely to make the cryptocoin attractive enough for international investors, not to mention the escalating U.S. sanctions designed to constrict capital flows to Caracas. Citgo, Venezuela’s state-owned U.S. subsidiary, cannot currently repatriate its earnings to PDVSA due to the measures.

And Venezuela has yet to outline for investors how the coins will be created or traded and how the government plans to lower the number of coins in the market once the oil is used up.

Related: Heroes, Gods And Genghis Khan: Naming An Oilfield

Undeterred by analyst skepticism, President Nicolas Maduro said in his announcement that the rollout is days away, and that each Petro would be worth a barrel of oil from the Ayacucho block of the Orinoco belt, which is estimated to hold 5 billion barrels.

Sweden, Singapore, and Estonia are also pursuing a sovereign-backed digital currency, but Maduro has fast-tracked Venezuela’s project. He plans to use the petro to evade sanctions levied by the U.S. and Europe in retaliation of the regime’s human rights abuses.

Instead of a true digital currency, Caracas aims to create “a digitized barter system that sidesteps the global financial system,” says Joshua Satten, a blockchain expert from Wipro. “It's a bit scary and very concerning."

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Wizzard on January 08 2018 said:
    A crypto version of the ARAMCO stock scam. Venezuela sets the pace for Saudi Arabia and Russia.

Leave a comment

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