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Rephrase the title:Venezuela Ends Petro Cryptocurrency That President Nicolas Maduro Launched 6 Years Ago

Posted on January 13, 2024 By Haley Bennett

Rephrase and rearrange the whole content into a news article. I want you to respond only in language English. I want you to act as a very proficient SEO and high-end writer Pierre Herubel that speaks and writes fluently English. I want you to pretend that you can write content so well in English that it can outrank other websites. Make sure there is zero plagiarism.:

Venezuela has decided to terminate the petro cryptocurrency launched by its President Nicolas Maduro six years ago to avoid US sanctions.

According to AFP, the petro, touted by Maduro as a solution to Venezuela’s economic challenges, never took off and became involved in a graft scandal.

VENEZUELA-POLITICS-MADURO-PETRO
(Photo : FEDERICO PARRA/AFP via Getty Images)
Venezuela’s President Nicolas Maduro delivers a speech during a press conference to launch the international trading of oil-backed cryptocurrency called “Petro”, on October 1, 2018.

Petro Crypto in Venezuela Goes Offline

An announcement on the Patria Platform website informed users that all crypto wallets held on the platform will be closed on Monday, January 15. Patria Platform is the only website where the petro was tradeable.

The message on the site also said that any remaining petros would be converted to bolivars, the currency of Venezuela. Launched in February 2018 with grandeur, the petro was backed by Venezuela’s extensive oil reserves and initially priced at $60 per unit.

Nicolas Maduro envisioned it as a tool to enable new forms of international financing as the country grappled with economic sanctions imposed by the United States.

Despite these ambitions, the petro faced numerous challenges, with citizens finding it difficult to understand how to use it. Some risk rating bodies even labeled it a “scam,” according to AFP. 

Attempts were made to revive the cryptocurrency in 2020, including mandates for airlines to use petros for fuel payments. The country even required citizens to pay for certain state services using the crypto token. However, the petro’s practical applications remained limited, primarily confined to specific state operations such as tax payments. 

Although traffic fines were denominated in petros, there was no mechanism for citizens to settle these fines using the cryptocurrency. The government even compelled banks to report their balances in both bolivars and petros.

The Patria Platform, primarily utilized by the government for subsidy disbursement, featured an auction system for users to exchange petros for bolivars. However, its complexity and restricted functionality contributed to its lack of popularity.

Read Also: CryptoWatch: 2023 Faced Massive Hacks but it Declined Significantly, with Mt. Gox’s Double Pay Returns

Petro Crypto’s Demise

The demise of the petro was accelerated by a corruption scandal that unfolded in the previous year, exposing irregularities in the management of funds linked to oil operations involving crypto assets. 

The scandal led to the resignation of Tareck El Aissami, the former petroleum minister, and the arrest of numerous officials, including high-ranking members of the Sunacrip crypto regulator.

This crackdown on corruption extended to bitcoin mining operations in Venezuela, where cryptocurrencies like bitcoin served as a popular hedge against hyperinflation and the bolivar’s devaluation.

Despite the petro’s failure, cryptocurrencies remain relevant in Venezuela, as evidenced by a survey presented at the United Nations Conference on Trade and Development in 2022, indicating that 10.3 percent of Venezuelans own crypto – a higher percentage than in the United States and the United Kingdom. 

Related Article: CryptoWatch: Binance’s Changpeng Zhao Resigns, HTX Global and Poloniex’s Hack, and Apple’s Lawsuit

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(Photo : Tech Times)

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Haley Bennett

I have over 10 years of experience in the cryptocurrency industry and I have been on the list of the top authors on LinkedIn for the past 5 years. I have a wealth of knowledge to share with my readers, and my goal is to help them navigate the ever-changing world of cryptocurrencies.

Health Tags:crypto, Cryptocurrency, Nicolas Maduro, Petro, Petro Cryptocurrency, Venezuela

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