Despite backlash from native officials and officials from governments around the world, Venezuela’s Petro is garnings its fair share of investors. Individuals from the United States, European countries, Turkey and Qatar have all shown interest.
“On Tuesday, there will be quite a few announcements about the start of the process. And there will surely be a lot of investors from Qatar, Turkey and other parts of the Middle East, though Europeans and Americans will also participate.” Venezuela’s Cryptocurrency Superintendent Carlos Vargas has stated.
Amidst what Venezuela’s President Nicolas Maduro has called an economic crisis, Maduro looked to cryptocurrencies as a way to save the country from collapse. Back in December he announced the Petro coin. This would be his saving grace from the strict sanctions placed on him by the United States government. According to Muduro, the petro will help them bypass the sanctions and clear up their problems.
The sanctions that were placed upon them by the Trump Administration prevents the country from bring in currencies from other countries to fund themselves and clear their current debts. Maduro has stated time and time again, “This is going to allow us to move forward to new ways of international financing for the country’s economic and social development,”
This is no doubt a rare moment for cryptocurrencies as usually they aren’t backed by governments or central banks. This doesn’t mean there is no government involvement as recently governments from around the world have been keeping tracking cryptocurrency and hitting them regulations. Maduro’s petro on the other hand is backed by 5 billion barrels of oil reserves. It further seems that he is interested in anyone who is willing to invest.
Looks as if everyone has an eye out on the petro at the moment. Investors, officials from governments around the world and officials in Venezuela. One has to wonder if the petro will successfully bail the country out of their financial crisis or just send them deeper down the rabbit hole.