Venezuelan cryptocurrency El Petro will be backed by oil and gold

“For every El Petro, a barrel of oil,” said Venezuelan President Nicolas Maduro, promising to launch digital currency mining throughout the country

Venezuela President Nicolas Maduro Moros led the country during a severe crisis. He inherited from Hugo Chavez a huge public debt of 70% of GDP (at the beginning of 2013) and a budget deficit of 13%. Today, the country's national debt is estimated at about 100-150 billion dollars. The country's economy's dependence on imports has led to a catastrophic shortage of currency in both the domestic and foreign markets of Venezuela.  

In this situation, the Venezuelan government turned its attention to the growing cryptocurrency market and in early December announced the creation of a national electronic currency, El Petro. The digital El Petro was supposed to solve a number of the country's economic problems and ensure Venezuela's monetary sovereignty in light of the financial blockade initiated in August by US President Trump. 

In support of the El Petro project, Nicolas Maduro announced that the government is allocating 5 billion barrels of oil to provide digital cryptocurrency. The value of El Petro is planned to be confirmed by the certified Ayachuro oil field, which has the declared amount of oil. And the cost of one El Petro is offered in the amount of one barrel of oil. The head of state hopes to gather specialists in the field of crypto-mining and thereby provide additional support for the Venezuelan economy by launching mining in all states.  

In addition to oil assets, El Petro is planned to be supported by the Arco Minero gold deposit, located in the Orinoco River belt. 

According to chaining.ru