For a country known to be rich in oil reserves, Venezuela could have been way ahead as far as the economy is concerned. Unfortunately, diminished oil production and dipping oil market prices have sunk the country deep into international debt. Venezuela has an external debt of approximately $150 billion. To make it worse, Venezuela has market sanction from the U.S.A and the European Union. Venezuela has an external debt of approximately $150 billion.
Oil has always been the primary revenue source for the country through 96 percent of the country’s exports. President Nicolas Maduro instituted the Petro cryptocurrency in December 2017. The launch of Petromonada currency targeted to diversify the country’s source of income. Additionally, the Petro currency was meant to minimize the country’s reliance on capital markets.
Petro tokens were initially valued at $60 for every unit sold. The token pricing was similar to the value of a barrel of oil in mid-January. Overall, 38.4 million Petro units were pre-sold for the period of 20th February to 19th March. A further 44 million units of Petro currency would be released to the market as of 20th March. Tareck El Aissami, the Vice President of Venezuela, stated confidently that the digital currency would earn the trust of investors in both local and international markets.