- The government established the currency in 2018 to avoid US sanctions.
- Despite the Maduro government’s best attempts it was never traded overseas.
The Petro (PTR), the official cryptocurrency of Venezuela, will reportedly stop functioning on January 15th. The government established the currency in 2018 to avoid US sanctions, but it never gained any traction.
According to reports, the government-run Petro currency website announced the closure, however the site was down recently. Reportedly the only location where the Petro was traded, the administration component of the Venezuelan Patria website requires a login to access.
Failed Attempt
The bolivar, the country’s fiat currency, fell precipitously due to US sanctions, and Bitcoin had already established a strong foothold in the nation when the state-run, oil-backed cryptocurrency was introduced. The Venezuelan parliament was opposed to President Nicolas Maduro’s decision to issue the petro.
Despite the Maduro government’s best attempts to promote the currency to the ten-member nations of the Bolivarian Alliance for the Peoples of Our America, it was never traded overseas after reaching full functioning in 2020.
It was never officially recognized as legal cash, hence its use was never mandated, despite efforts to promote its usage domestically. Without a presidential decree compelling it, not even Venezuela’s biggest bank, the Banco de Venezuela, would recognize the petro.
The National Superintendency of Crypto Assets, which was in charge of the petro, was led by Joselit Ramirez Camacho, who was the subject of a $5 million reward from U.S. Immigration and Customs Enforcement in June 2020. He is said to have connections to the global drug trade.
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