• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 1 day GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 7 days America should go after China but it should be done in a wise way.
  • 1 day Even Shell Agrees with Climate Change!
  • 3 days How Far Have We Really Gotten With Alternative Energy
  • 4 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 18 mins Does Toyota Know Something That We Don’t?
  • 2 hours Microbes can provide sustainable hydrocarbons for the petrochemical industry
  • 3 days World could get rid of Putin and Russia but nobody is bold enough
  • 6 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in

Breaking News:

Houthis Threaten More Red Sea Attacks

Venezuelan Constituent Assembly Approves Oil-Backed Cryptocurrency

Venezuela’s National Constituent Assembly has finally given the go-ahead to the country’s oil-backed cryptocurrency, El Petro, after the parliament declared it unconstitutional. According to a statement by Vice President Tareck El Assaimi, the decree will establish the basis for the management of these alternative mechanisms in financial and commercial activities.”

The El Petro was first offered in pre-sale in February, and following the launch President Nicolas Maduro said proceeds had reached US$735 million. The actual sale of the cryptocurrency began a month later, and Maduro claims this has raised US$5 billion to date. There is no evidence of these proceeds yet. The cryptocurrency is backed by 5 billion barrels in oil reserves from the Ayacucho bloc 2 in the Orinoko belt.

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. This attempt was doomed, however, as Washington was quick to ban trading in El Petro from the United States.

Analysts 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.]

Related: Saudi Arabia To Fund Giant Solar Project With Oil Riches

Caracas, on the other hand, says it has already begun reaping the benefits of the cryptocurrency. According to Maduro, 30 ambulances for delivery to the Vargas state have been purchased with El Petro.

Earlier this month, the Venezuelan Foreign Ministry also said that Russia was mulling over the use of El Petro for transactions with Venezuela. There is even speculation that Russia played an important role in the launch of the currency as a way of testing the waters for avoiding sanctions through the use of cryptocurrencies.

By Irina Slav for Oilprice.com

ADVERTISEMENT

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News