Venezuela Launches Oil-Backed Cryptocurrency (bbc.co.uk)

Venezuela has launched a cryptocurrency backed by oil in an attempt to bypass tough economic sanctions imposed by the U.S. government. "The 'Petro' is intended to bolster the country's crumbling economy, which has been suffering from hyperinflation and devaluation for years," reports the BBC. "Venezuela claims it is the world's first sovereign cryptocurrency." From the report: Critics say the move is a desperate attempt by Caracas to raise cash at a time when Venezuela lacks the ability to repay its $150 billion of foreign debt. Opposition leaders said the sale constitutes an illegal issuing of debt, while the US Treasury Department warned it may violate sanctions imposed last year. The government says the currency aims to circumvent US sanctions on the economy. President Nicolas Maduro has said each tokens will be backed by a barrel of Venezuelan crude. The Latin American country has the world's largest proven oil reserves. A total of 100 million Petros will be sold, with an initial value set at $60, based on the price of a barrel of Venezuelan crude in mid-January. The official website published a guide to setting up a virtual wallet in which to hold the cryptocurrency, but did not provide a link for actually doing so on Tuesday.

Comments

Re:I predict a lot of folks piling in

[Anonymous Coward]

They were a third world hell hole that suddenly had a ton of oil money

Untrue. VZ oil goes back to the 1920s.

for some bizarre reason instead of hoarding for the ruling class they used it to (briefly) become a first world nation

You mean, giving it to poor people like Chavez's daughter (now worth billions).

When the oil money bubble burst they went right back to being a poor country because, well, besides oil they're a poor country

Poor, but also agriculturally very rich. If the current administration only could maintain farming and some industry beside oil...

I find it funny that what we have here is a country that is quite possibly going to use Cryptocurrencies for what the libertarian types have always dreamed of

Silly libertarians, recoiling over such minor issues like mass starvation and dictatorship.