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Fall Of The Venezuelian Petro-Dollar

Fall Of The Venezuelian Petro-Dollar

In the words of President Nicolas Maduro, the Petro is even strong enough to take on the comic hero Superman.”We have no indication that anyone has been assigned to Petro or that the Petro is actively traded on any stock exchange,” said Tom Robinson, co-founder of Elliptic, which deals with illegal activity in the crypto industry.

Despite a four month Reuters search, no companies or institutions are yet known that accept Petro as a means of payment. The cyber motto can not be traded on any of the well known crypto exchanges. According to the gatekeeper, the Venezuelan Petro supervision, which is to be located in the Ministry of Finance, has no office there. The website of the newly created authority is not online and its boss Joselit Ramirez does not respond to requests.

At the same time, the government is distributing conflicting information According to Maduro, the petro emission has yielded $3.3 billion. The Internet motto is also used to pay for imports. Cabinet member Hugbel Roa, on the other hand, emphasizes that the technology behind the Petro is still in the development stage and the currency has not yet been used.

Several weeks ago, Maduro created additional confusion with the announcement that wages, pensions and the exchange rate of Bolivar, the national currency, should be linked to the Petro. “There is no way to tie prices or exchange rates to anything that is not traded,” says Alejandro Machado, a Venezuelan computer and cryptocurrency expert. Because for the Petro can simply determine no price.

Oil Reserves As Saftey

Venezuela has coupled the value of the Petro to the price of Venezuelan crude oil. As a security, according to the government reserves, 5.3 billion barrels of Ayacucho I oil field near the town of Atapirire in the Central Venezuelan savanna. There are only a few smaller and aging derricks in the area. Despite the amount of oil reserves suspected in the Ayacucho I field, there is a lack of infrastructure to pump the raw material out of the ground, said Francisco Monaldi, a Venezuelan native and Professor of Energy Policy at Rice University, Houston.

Former Venezuelan Oil Minister Rafael Ramirez estimates the cost of developing the oil field at $20 billion. The problematic state of the oil company PDVSA simply does not have this money. “The value of Petro exists solely in the notion of government.” Ramirez lives in exile after corruption charges submerged. He rejects the allegations.

Unlike the best-known cryptocurrencies Bitcoin or Etherum, petro-investors are in short supply. The few cavort in relevant online forums like Bitcointalk. After initial euphoria at the beginning of the year, the mood in the local contributions turned. Users complained about lack of information and delays in the allocation of virtual coins. Others complained about not being able to sell or transfer Petro to other accounts. “Time will tell if it was a good investment or not.” Said one investor.