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President of Venezuela announced the creation of a cryptocurrency "Petro"

President of Venezuela Nicolas Maduro has announced a new cryptocurrency in the conditions of the economic crisis and a sharp drop in the cost of the bolivar, the national currency of the country.

04.Dec.17 2:19 PM
By Daria Zaytseva


President of Venezuela announced the creation of a cryptocurrency "Petro"

According to Reuters, Maduro made the announcement during the Christmas television show, saying that the cryptocurrency, which is not yet launched, would be supported by commodity stocks, including oil.

Maduro, who took office in 2013 and has presided over the aggravation of the socio-economic crisis, said that the cryptocurrency would help the country overcome the financial "blockade", according to a statement published on the government's official website.

Opposition leaders in Venezuela, reportedly, have rejected his idea. Reuters quoted lawmaker Angel Alvarado, who said that the idea has "no credibility."

According to Business Insider, this move is taking place against a sharp rise in the cost of the bolivar against the U.S. dollar and weeks after the government issued a new 100,000-bolivar note. As reported yesterday in the New York Times, the rapid inflation of the bolivar has led to a sharp increase in consumer prices, which exacerbated the crisis there.

The announcement of "petro" is also a notable event, given that some Venezuelans have turned to bitcoin mining in an effort to make money amid the crisis.

In September, the Atlantic noted that low energy costs have made mining - an energy-intensive process through which new transactions are added to a blockchain, introducing new coins into the process - an attractive option.

According to the statement, the government also intends to create a "blockchain observatory", which will belong to the Ministry of Popular Power for University Education, Science and Technology.

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