When Venezuela’s leader Nicolas Maduro announced that they would release a cryptocurrency backed by oil, most people around the world and in Venezuela shook their heads in dismay. Today it could be linked to a separate venture if the leader gets his way.
Al Jazeera, a famous news outlet has reported that Maduro plans on approach the Organization of the Petroleum Exporting Countries AKA OPEC to create a likewise cryptocurrency of their own. It should also be noted that Maduro is also a member of OPEC.
Al Jazeera got this info from a local radio broadcast and in it Maduro is quoted saying, “I’m going to officially propose to all OPEC and non-OPEC producing countries that we adopt a joint cryptocurrency mechanism backed by oil,” He apparently furthered this issue with Mohammed Sanusi Barkindo, OPEC’S Secretary-General during a meeting they had on Tuesday.
It was at the end of 2017 that Maduro announced he would release an oil backed cryptocurrency. He even went as far as to hire a group of miners from all over the world. The cryptocurrency plan was completely looked down upon by those around the world and by officials and citizens of Venezuela. It was even brought to light that the country would try to use the cryptocurrency to get around sanctions placed on them by the Trump Administration.
The move was deemed illegal by one of the opposition lawmakers. Jorge Millan, a legislator spoke out and stated that, “This is not a cryptocurrency, this is a forward sale of Venezuelan oil,”
Maduro further announced last month that the Petro’s launch would be followed by a coin sale. Although the move may pull the country out of its slump momentarily, many suspect that in the long run it will just push them further down the poverty line.