National Cryptocurrency El Petro Not Found In Venezuela − Report
Amid a growing economic crisis in Venezuela, a local cryptocurrency El Petro is not used anywhere, Reuters reports referring to the findings of its research.
For several months, Reuters journalists were looking for information about the use of the national cryptocurrency in Venezuela. They talked to many specialists in the crypto sphere and oil development, studied transactions with digital assets, and visited production sites. As a result, they concluded that El Petro is not exchanged on crypto exchanges and is not accepted as a means of payment at trading spots.
Earlier, Venezuelan President Nicolas Maduro stated that El Petro is backed by oil reserves. The journalists arrived in Atapirire, where this raw material is stored in the amount of five billion barrels, but no equipment or traces of oil production were found.
“The government pegged the value of the petro to the price of one barrel of Venezuelan oil – currently around $66 – and promised to back it with crude reserves located in a 380-square-kilometer area (147 square miles) surrounding Atapirire,” Reuters' correspondent Brian Ellsworth noted.
According to journalists, this is the main reason for the failures of the Venezuelan government. The country should allocate $20 billion for extraction. Such funds do not exist, and, besides, the largest oil producer PDVSA has huge debts.
As previously reported, residents of Venezuela prefer to invest their money in Dash cryptocurrency despite the President's calls for support of El Petro.