The South American country, Venezuela, has registered over 860,000 individuals to mine the country’s oil-backed cryptocurrency called ‘Petro.’ The country is looking for more citizens to enroll in the portal launched by the Superintendence of Cryptocurrencies and Related Activities. The last date for registration is January 21, 2018.
From the registered individuals, over 300,000 have already begun working at the Chamba Juvenil program. The Chamba Juvenil program aims to incorporate youth from the age of 15 to 35 into labor and productive occupation.
El Impulso, Venezuela’s oldest newspaper informed that only registered citizens are able to purchase the new cryptocurrency. It reported, “registration is an essential requirement for citizens to gain access to the Petro.”
Registration is must, says government
In early December 2017, Venezuela’s President Nicolas Maduro announced the plan to roll out cryptocurrency endorsed by oil, gas, gold and diamond reserves. The move was taken to overcome the financial blockade that the country is suffering from.
Venezuela citizens that register to mine “petro” will also gain the privilege to buy other digital assets recognized by the government. Jorge Rodriguez, Minister of Communication and Information, said:
“Natural or legal persons registered in the Registry will be able to acquire other types of cryptocurrencies for free use and demand in Venezuela, as long as they are authorized.”
Registered citizens will help the government to build mining farms around the country. Maduro told “We are going to call them a special cryptocurrency team…[They will] set up cryptocurrency mining farms in all states and municipalities of the country.”
100 million Petros coming soon
The government plans to support each Petro token by a barrel of oil. Maduro said, “Every Petro will be equal in value to Venezuela’s oil barrel.” For now, the government has credited 5.3 billion barrels of crude oil to the country’s digital asset.
Petro could be a way to circumvent U.S. sanctions which have raised the annual inflation rate to over 1000 percent. On 6th January 2017, Maduro publicised the release of 100 million units of petro in coming days. The average price per barrel of oil is $59.07, as each unit is backed by an oil barrel, the issuance of 100 million Petros will equate to $5.9 billion. Maduro addressing the nation on state television said, “I have ordered the emission of 100 million Petros with the legal sustenance of Venezuela’s certified and legalized oil wealth.” He also stated that the cryptocurrency will help dismantle the “tyranny of the dollar.”
According to Organization of the Petroleum Exporting Countries (OPEC), the South American nation has world largest oil reserves. Moreover, oil is Venezuela’s chief export pocketing 95 percent of export revenue. Cryptocurrencies are meant to be decentralized, and its main role is to provide transparency during transactions. Venezuela will be one of the few nations to actually roll out legalized state regulated cryptocurrency.
Will the introduction of Petro into the country’s economic ecosystem reduce the inflation rate of the country?