|White paper||Petro White Paper|
|Initial release||20 February 2018|
|Block explorer|| registro|
The petro (₽), or petromoneda,launched in February 2018, is a cryptocurrency issued by the government of Venezuela.
Announced in December 2017, it is supposed to be backed by the country's oil and mineral reserves, and is intended to supplement Venezuela's plummeting bolívar fuerte ('strong bolívar') currency, as a means of circumventing U.S. sanctions and accessing international financing. On 20 August 2018, the bolívar soberano ('sovereign bolívar') was introduced, with the government stating it would be linked to the petro coin value.
As of January, 2020, Venezuelan president Nicolás Maduro decreed it mandatory to pay with petro for government document services and airplane fuel for planes flying international flights.
Venezuelan president Nicolás Maduro announced the petro in a televised address on 3 December 2017, stating that it would be backed by Venezuela's reserves of oil, gasoline, gold, and diamonds.
Maduro stated that the petro would allow Venezuela to "advance in issues of monetary sovereignty",and that it would make "new forms of international financing" available to the country. Opposition leaders, however, expressed doubt due to Venezuela's economic turmoil, pointing to the falling value of the Venezuelan bolívar, its fiat currency, and $140 billion in foreign debt.
On 5 January 2018, Maduro announced that Venezuela would issue 100 million tokens of the petro,which would put the value of the entire issuance at just over $6 billion. It also established a cryptocurrency government advisory group called VIBE to act as "an institutional, political and legal base" from which to launch the petro. Carlos Vargas is the "Superintendent of Cryptocurrencies".
Also in January, as a response to the petro, Venezuela's National Assembly, headed by the opposition Democratic Unity Roundtable, declared the petro to be an illegal debt issuance by a government desperate for cash, and has said it will not recognize it.
In a document leaked to and reviewed by Reuters , VIBE recommended that the government sell $2.3 billion worth of petros in a private offering at a discount of up to 60%, indicating that "Maduro’s valuation of the nascent petro faces significant market skepticism", followed by $2.7 billion worth of petros offered to the public a month later, with the remainder "shared between the government and VIBE". It also suggested that the government accept tax payments in petros as well as allow PDVSA, the country's state-owned oil company, incorporate cryptocurrencies in its dealings with foreign companies. [ when? ]
The petro's pre-sale started on 20 February 2018 at -04:00 UTC and ended on 19 March 2018 at -04:00 UTC.38.4 million tokens were made available. The government stated the pre-sale raised US$3.3 billion, though according to Steve Hanke no independent audits were made to verify this claim.
The technological identity of petro was perplexing during its genesis. Initially, the white paper of petro stated that the currency would be on the Ethereum platform, but the white paper was changed at launch and the platform was to be NEM.However, even after the launch, white papers in various languages still shared conflicting information as to which platform the petro was part of. In October 2018, the white paper was changed once again, and a core developer of Ethereum, Joey Zhou, stated that the new petro white paper blatantly plagiarized from the GitHub repository of Dash. The newest version of the white paper revealed that petro was a clone, effectively a fork, of the cryptocurrency Dash, theoretically debunking the idea that petro was built on a separate blockchain platform.
Due to the unorganized launch by the Venezuelan government, scammers were able to establish their own "petro" currencies on various cryptocurrency platforms, though these schemes did not garner much success.
The second phase of the petro launch involves a public sale of 44 million tokens.
On 21 February 2018, petro gold, a gold-backed cryptocurrency, was announced in a televised speech given by Venezuelan President Nicolás Maduro.[ citation needed ] It was not clear whether the gold backing the tokens would be actual gold reserves or some kind of share of the country's untapped mineral wealth.
In August 2018, the Maduro government carried out a currency reform, centered around replacing the old bolivar fuerte currency with the bolívar soberano.One bolívar soberano is worth a hundred thousand bolivar fuerte. Under the country's fixed exchange rate to the US dollar the new currency is devalued by roughly 95% compared to the old bolivar fuerte. Additionally, the new bolívar soberano has a fixed exchange rate to the petro, with a rate of 3,600 bolívares soberanos to one petro. The petro's fixed exchange to barrels of oil is one to one (the market value was approximately US$60 at the time of the reforms). As part of the reforms Venezuelans will be paid at least 0.5 petros a month.
Following the reform, Reuters investigated the petro six months after its ICO. When visiting the Venezuelan Ministry of Finance headquarters in Caracas, the Superintendent of Cryptocurrencies did not have an office there and their promoted website did not exist.The Atapirire parish, where President Maduro specifically decreed the petro's value would be linked to oil reserves in the area, has seen no petroleum-related activities and the oil rigs in the area appeared small, old and abandoned. Experts in economics stated that it was impossible to link the petro to the bolívar soberano because no one knows its legitimate value. Though "reservations" were sold by the Venezuelan government to obtain petros, no petros had been released by the Venezuelan government.
The design of the petro by the Venezuelan government has been controversial, with white paper changing by the day even after the petro's pre-sale.Petros were 100% "pre-mined" by the Venezuelan government, meaning that new tokens cannot be created after the issuance. Members of the Venezuelan Ministry of University Education, Science and Technology allegedly under advisory of the Russian government designed the petro to circumvent United States sanctions, with Russian president Vladimir Putin denying official involvement. On 1 October 2018, the cryptocurrency switched to an X11 algorithm-based design, which was copied from Dash.
During the ICO petros could only be purchased from the Venezuelan government with Russian rubles, Bitcoin, NEM and Ethereum.The minimum required investment to acquire the crypto-asset in 2018 was 50 euros (or its equivalent) per digital wallet or 1000 euros (or its equivalent) per bank deposits.
As of 2018 [update] Venezuela legally allowed the use of petro for virtually any payment including oil trade, taxes, fees, real estate, gasoline, flights and more.
Weiss Cryptocurrency Ratings states that the white paper shows no method as to how the Venezuelan government will base the petro on oil prices, concluding that the currency "is a worthless token".But according to the white paper, the base price of the petro is equivalent to the price of a single Venezuelan oil barrel: 1 petro = 1 oil barrel. The official Venezuelan oil price is defined by the Venezuelan Ministry of Oil and Mining and the current price of the petro (during the ICO) is referenced on its web page.
According to the official white paper, national and international licensed exchanges will be able to sell and exchange the petro, allowing the market to define its price.[ citation needed ] While there is no mechanism to exchange petros for any other currency yet, the government is expected to back each petro with the value of one oil barrel obtained specifically from the Atapirire parish of Anzoátegui to be exchanged into bolivares or other currencies. However, President Maduro has made contradictory statements saying that the petro's worth may be determined solely by market value.
The United States Department of the Treasury warned that participating in Venezuela's proposed initial coin offering for the petro cryptocurrency could violate U.S. sanctions against Venezuela, because it "would appear to be an extension of credit to the Venezuelan government".President Donald Trump signed an executive order prohibiting transactions in any Venezuelan government-issued cryptocurrency by a United States person or within the United States, effective 19 March 2018, after claiming it was designed to obfuscate US sanctions and access international financing.
The Brookings Institution stated that "it is relatively unsurprising that a dictatorship with little reserve currency ... has resorted to a deceitful means like introducing the petro ... [t]he petro ... exists to create foreign currency reserves from thin air", further explaining that the creation of the petro has tarnished the reputation of cryptocurrencies and that sanctioned countries "might pursue the same fraudulent strategy as Venezuela: create a cryptocurrency tied to a government-controlled asset, raise money in violation of sanctions, and proceed to manipulate that cryptocurrency’s value to maximize profit".
The cryptocurrency community's response was generally negative. Economist Jean Paul Leidenz expressed concerns that the creation of the petro would encourage further hyperinflation.Supply-side economist Steve Hanke, who studies hyperinflation in Venezuela from the perspective of supply-side economics, stated that the petro was likely to wind up "in the graveyard", later saying of the petro, "It doesn’t exist. The whole thing is a sham, a fraud. It was rolled out in January, and it doesn’t trade. It is not considered by those who rate cryptocurrencies as even a cryptocurrency." Other analysts point to its government control or centralisation as its greatest weakness. Financial journalist Max Keiser expressed his support in light of the country's hyperinflation.
According to Bloomberg, the organizations that rank cryptocurrencies have described the petro as a "scam", with sites like ICOindex, ICObench, Cryptorated and ICOreview giving negative reviews or not even rating the petro due to its status. [ citation needed ]Initially, from its white paper which was released in January 2018, the petro was missing some important information regarding its mechanism to its technology. After a couple of weeks, a new version of the white paper was released which announced a different blockchain platform on which the petro would be built.
The Washington Post economic reporter Matt O'Brien said that "The petro might be the most obviously horrible investment ever... The petro is about creating something useless – that's why only foreigners can buy them, but only Venezuelans can spend them".
In economics, hyperinflation is very high and typically accelerating inflation. It quickly erodes the real value of the local currency, as the prices of all goods increase. This causes people to minimize their holdings in that currency as they usually switch to more stable foreign currencies, in recent history often the US dollar. Prices typically remain stable in terms of other relatively stable currencies.
The politics of Venezuela occurs in a framework explained in Government of Venezuela.
The economy of Venezuela is based primarily on petroleum and has been in a state of total economic collapse since 2013. Venezuela is the sixth largest member of OPEC by oil production. Since the 1920s, Venezuela has been a rentier state, offering oil as its main export. The nation has experienced hyperinflation since 2015.
The bolívar soberano has been the official currency of Venezuela since 20 August 2018. The bolívar soberano replaced the bolívar fuerte after a transition period. The primary reason for replacement, at a rate of 1 Bs.S to 100,000 Bs.F, was hyperinflation.
Petrocurrency is a word used with three distinct meanings, often confused:
In international finance, a world currency, supranational currency, or global currency is a currency that would be transacted internationally, with no set borders.
The Central Bank of Venezuela is the central bank of Venezuela. It maintains a fixed exchange rate for the Venezuelan bolívar and since 1996 is the governing agent of the Venezuelan Clearing House System.
A cryptocurrency, crypto-currency, or crypto is a digital asset designed to work as a medium of exchange wherein individual coin ownership records are stored in a ledger existing in a form of a computerized database using strong cryptography to secure transaction records, to control the creation of additional coins, and to verify the transfer of coin ownership. It typically does not exist in physical form and is typically not issued by a central authority. Cryptocurrencies typically use decentralized control as opposed to a central bank digital currency (CBDC). When a cryptocurrency is minted or created prior to issuance or issued by a single issuer, it is generally considered centralized. When implemented with decentralized control, each cryptocurrency works through distributed ledger technology, typically a blockchain, that serves as a public financial transaction database.
When elected in 2013, Nicolás Maduro continued the majority of existing economic policies of his predecessor Hugo Chávez. When entering the presidency, President Maduro's Venezuela faced a high inflation rate and large shortages of goods that was left over from the previous policies of President Chávez. These economic difficulties that Venezuela was facing were one of the main reasons of the current protests in Venezuela. President Maduro has blamed capitalism for speculation that is driving high rates of inflation and creating widespread shortages of staples, and often said he was fighting an "economic war", calling newly enacted economic measures "economic offensives" against political opponents he and loyalists state are behind an international economic conspiracy. However, President Maduro has been criticized for only concentrating on public opinion instead of tending to the practical issues economists have warned the Venezuelan government about or creating any ideas to improve the economic situation in Venezuela such as the "economic war".
Dakazo refers to a set of actions taken by the Venezuelan government forcing consumer electronic retail stores, with Daka being the most prominent, to sell products at much lower prices on 8 November 2013, weeks before municipal elections. The forced Daka price changes helped Venezuela's ruling party, PSUV, win in some of the municipal elections, though the massive sale of goods caused further shortages in the months following the initiative.
DolarToday is an American website that focuses on Latin American politics and finance. The company is more known for being an exchange rate reference to the Venezuelan bolívar, a currency which is not freely convertible; it is also known for the company's focus in monitoring the Venezuelan economy.
The Crisis in Venezuela during the Bolivarian Revolution is an ongoing socioeconomic and political crisis that began in Venezuela during the presidency of Hugo Chávez and has continued since. It is marked by hyperinflation, escalating starvation, disease, crime and mortality rates, resulting in massive emigration from the country. According to economists interviewed by The New York Times, the situation is the worst economic crisis in Venezuela's history and the worst facing a country in peace time since the mid-20th century and is more severe than that of the United States during the Great Depression, of the 1985–1994 Brazilian economic crisis, or of the 2008–2009 hyperinflation in Zimbabwe. Other American writers have also compared aspects of the crisis such as unemployment and GDP contraction to Bosnia and Herzegovina after the 1992–1995 Bosnian War as well as Russia, Cuba and Albania following the collapse of the Eastern Bloc in 1989.
The Venezuelan economic crisis is the deterioration that began to be noticed in the main macroeconomic indicators from the year 2012, and whose consequences continue, not only economically but also politically and socially. The April 2019 International Monetary Fund (IMF) World Economic Outlook described Venezuela as being in a "wartime economy". For the fifth consecutive year, Bloomberg rated Venezuela first on its misery index in 2019.
Venezuela, officially the Bolivarian Republic of Venezuela, is a country located on the northern coast of South America. It is known for its large proven oil reserves. Before oil was discovered, Venezuelan production was primarily agriculture, such as coffee and cocoa. After the first commercial drilling for oil in 1917, oil production increased drastically due to the oil boom of the 1920s and was later furthered by World War II, as Venezuela supplied oil to the United States. From 1958 to 1989, democratic leaders attempted to use the large oil revenues to invest in other industry through various policies such as import substitution and other programs designed to diversify the Venezuelan economy away from a highly specialised export range. These attempts, for the most part, were unsuccessful as Venezuelan government revenues continued to be highly volatile due to the fluctuating price of oil, which was reflected especially throughout the 1980s due to the oil price crash. After struggling with fiscal debts due to a variety of trade protection measures and other policies, the President of 1989, President Andrés Pérez, worked with the International Monetary Fund in an attempt to rectify some of the issues plaguing the Venezuelan government. Perez was eventually unsuccessful due to political instability due to proposed austerity measures, and Hugo Chávez was later elected in 1998, after a defeat of both major political parties. The Chávez government begun enacting various socialist programs, such as free education and healthcare. These programs would continue up until Chávez's death in 2013. President Nicolás Maduro, Chávez's successor, was elected on 14 April 2013 and pledged to continue Chávez's work. However, due to hyperinflation, shortages of food and medicine and political instability, about 3 million Venezuelans have fled the country since 2015.
During the crisis in Venezuela, governments of the United States, the European Union, Canada, Mexico, Panama and Switzerland applied individual sanctions against people associated with the administration of Nicolás Maduro. The sanctions were in response to repression during the 2014 Venezuelan protests and the 2017 Venezuelan protests, and activities during the 2017 Venezuelan Constituent Assembly election and the 2018 Venezuelan presidential election. Sanctions were placed on current and former government officials, including members of the Supreme Tribunal of Justice (TSJ) and the 2017 Constituent National Assembly (ANC), members of the military and security forces, and private individuals accused of being involved in human rights abuses, corruption, degradation in the rule of law and repression of democracy.
During the 2019 Venezuelan presidential crisis, AP News reported that "familiar geopolitical sides" had formed, with allies Russia, China, Iran, Turkey, Syria, and Cuba supporting Maduro, and the US, Canada, and most of Western Europe supporting Juan Guaidó as interim president. Amid widespread condemnation, President Maduro was sworn in on 10 January 2019, and the President of the National Assembly, Guaidó, was declared the interim President by that body on 23 January 2019. Intervention by the United States in Venezuela has been alleged by allies of Nicolás Maduro and political figures from the left spectrum; Maduro's government states that the crisis is a "coup d'état led by the United States to topple him and control the country's oil reserves." Guaidó denies the coup allegations, saying peaceful volunteers back his movement.
Hyperinflation in Venezuela is the currency instability in Venezuela that began in 2016 during the country's ongoing socioeconomic and political crisis. Venezuela began experiencing continuous and uninterrupted inflation in 1983, with double-digit annual inflation rates. Inflation rates became the highest in the world in 2014 under Nicolás Maduro, and continued to increase in the following years, with inflation exceeding 1,000,000% by 2018. In comparison to previous hyperinflationary episodes, the ongoing hyperinflation crisis is more severe than those of Argentina, Bolivia, Brazil, Nicaragua, and Peru in the 1980s and 1990s, and that of Zimbabwe in the late-2000s.
Viernes Rojo in Venezuela refers to Friday, 17 August 2018, when President Nicolás Maduro announced a series of economic reforms known as "Program of Recovery, Growth and Economic Prosperity", in response to increasing hyperinflation. This event is also known as Paquetazo Rojo or Madurazo by some media outlets. These reforms include the introduction of the a new currency with five fewer zeros, increase the minimum wage based on the Petro and increase VAT to 16%. According to President Maduro, these reforms have the goal of recovering the population's salary in two years through the Economic Recovery of Growth and Prosperity program, to eliminate the fiscal deficit and to eliminate the use of paper money.
The Venezuelan twelve-and-a-half-céntimos-coin or, was a cupro-nickel money and that was worth one-eighth of a silver Venezuelan Bolivar (VEB), this round piece of metal was known also with the very popular nicknames of "Locha" or "Cuartillo".
Bancor Protocol is a standard for decentralized exchange networks used to allow for the automated conversion of cryptocurrency tokens into other tokens, including across blockchains, without the need for an order book or counterparty to facilitate the exchange. Bancor invented the world’s first blockchain-based automated liquidity pool, or automated market maker (AMM) called a Smart Token, a digital currency with an embedded converter that allows it to be issued or exchanged automatically for any token in its network. Bancor Network consists of all the different tokens utilizing the Bancor Protocol and connected through BNT, the Bancor Network Token, which serves as the hub token for the network through which any token can be converted into any other token.
Venezuela is to start selling its cryptocurrency “Petro” next month. In a meeting with cabinet ministers, President Nicolas Maduro (above) said it will launch the currency on 20 February.
The coin is not sold on any major cryptocurrency exchange. No shops are known to accept it.
Gabriel Jiménez hated the Venezuelan strongman Nicolás Maduro. But he loved cryptocurrency. When he built the regime a digital coin, he nearly paid with his life.CS1 maint: uses authors parameter (link)