- Venezuela has formally terminated its Petro cryptocurrency, ending a five-year experiment that was marred by controversy and corruption.
Venezuela has formally pulled the plug on its Petro cryptocurrency, ending a five-year experiment that was marred by controversy and corruption.
The Petro was launched in 2018 by President Nicolas Maduro as a way to bolster the nation’s foreign money, the bolívar, amid a extreme financial disaster.
Backed by Venezuela’s oil reserves, the token was met with skepticism and opposition from the beginning.
Critics, together with the nation’s opposition-controlled congress, deemed the Petro unlawful and accused the federal government of exploiting the nation’s oil wealth. In 2019, america sanctioned a Russian financial institution for its involvement in financing Petro.
See Additionally: Venezuela To Liquidate All The Petro (PTR) In Circulation On Jan 15 After 6 Years
Regardless of these challenges, the Venezuelan authorities tried to advertise the Petro by linking it to varied providers, reminiscent of passport issuance and social housing initiatives. The minimal wage was additionally partially pegged to the Petro.
Nonetheless, the Petro failed to achieve widespread adoption and remained largely confined to the Patria Platform, the one web site the place it might be traded.
The ultimate nail within the Petro’s coffin got here within the type of a corruption scandal involving monetary irregularities in using crypto belongings for oil operations.
This led to the resignation of the petroleum minister and a crackdown on Bitcoin mining operations.
Consequently, the Venezuelan authorities has determined to terminate the Petro and convert any remaining tokens to bolivars, the nation’s struggling native foreign money.
The publish Venezuela Formally Terminates Petro Cryptocurrency After 5 Years appeared first on BitcoinWorld.
