Venezuelan President Nicolas Maduro has stated that the nation will sell oil and portion of the gold it manufactures for its national digital currency petro.
“We will sell Venezuelan oil in exchange for petros. We have already signed contracts for the sale of oil, steel, iron and aluminum, and we will sell part of the gold for petros,” Maduro disclosed to Venezuelan paper El Nacional, as detailed by Russian news outlet TASS.
As indicated by Maduro, the Venezuelan government is effectively bringing its digital currency into residents’ everyday lives. He stated that at least 6 million families in Venezuela had utilized petro as a payment method to buy products and services during the New Year festivities. The #PetroApp hashtag was also purportedly trending on Twitter on January 2 in Venezuela.
Petro was revealed in October 2017, and its sales started in February 2018. As per TASS, the cost of one petro is equivalent to the cost of a barrel of oil (WTI crude price in Venezuela is presently at roughly $63).
As petro is pegged to the cost of oil, Maduro recently stated that Venezuela would back the digital currency with around 30 million barrels of crude oil sitting in the nation’s storage tanks. The figure, in any case, is radically down from 5 billion barrels during the petro launch in February 2018.