Venezuela’s President Nicolas Maduro has declared its state-backed cryptocurrency Petro as the country’s official national currency.
As Maduro claimed in a report published Monday by Venezuela’s television network Telesur, Petro is already present across six of the world’s leading international exchanges. Following the president’s announcement, a new whitepaper has also been released clarifying that Petro is no longer 100 percent backed by oil reserves but is also supported by other resources in the country.
According to Maduro, mining Petro will be not necessary as the national cryptocurrency already has a value equivalent to the country’s mining wealth and oil reserves. As Maduro touted, Venezuela has made history by launching its own national cryptocurrency and a platform that is expected to bolster the country’s financial authority.
Following the announcement, the government of Venezuela has also released a new whitepaper indicating that Petro will be using Dash’s X11 mining algorithm for Proof of Work, which would be verified using a staked master node system.
In addition to explaining the basic concept of the nascent technology behind Petro, the whitepaper also provides illustrations directly lifted from Bitcoin’s and Dash’s whitepaper.
As Ethereum developer Joey Zhou recently tweeted regarding the Venezuelan government’s move:
In addition, the whitepaper also detailed that Petro is now 50 percent backed by the country’s oil reserves, while 20 percent of its value is pegged to gold, 20 percent iron, and 10 percent diamond.
As Maduro declared on Telsur TV:
“All Venezuelans will have access to the petro and through it to make international purchases. Petro coins are now a legal substitute to dollars in real estate deals as well as paying for goods such as airline tickets, hotels and the like.”