Venezuelan Government gains $735 million from cryptocurrency sale

YESTERDAY the President of Venezuela tweeted about the successful pre-sale of the countries own cryptocurrency. The cryptocurrency named “Petro” is, according to Caracas to be pegged 1:1 to the price of a barrel of Venezuelan oil.

The tweets are as follows:

“We are in the technological and economic vanguard to overcome the speculation of international currencies that affect the lives of Venezuelans. The Petro reaffirms our economic sovereignty. #AlFuturoConElPetro”

“To big troubles, big solutions! From the first minute the game started well, and we started winning: 4.777 billion yuan or 735 million dollars is the initial result of Petro’s purchase intention operations. #AlFuturoConElPetro”

Although this has caused quite the level of skepticism, as the Venezuelan Bolivar is currently in a state of hyper-inflation and with food shortages and a lack of other basic necessities.

The price rise is expected to be due to asset manipulation and not a rising demand of the Petro cryptocurrency. As of the writing of this article there is no other evidence that such demand exists, other than the words of Mr Maduro.

The cryptocurrency is intended to be used to circumvent the current economic sanctions in place from the United States. Whether this is a move towards the adoption of future technologies or just a pretty headline we are yet to see.

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