The Venezuelan government details the functioning of the future national cryptocurrency

Venezuelan President Nicolas Maduro announced last December the creation of a national cryptocurrency.

With the New Year, his government released details of how this new currency, the Petro, works

Petro and oil

Nicolas Maduro explained that Petro, as its name suggests, will be supported by the country’s oil. It allocated 5.3 billion barrels to the new currency, for a value of $ 267 billion.

It will be the Ayacucho certified oil field, located at the Orinoco oil belt.

“Every Petro will be backed by a barrel of oil,” said President Maduro.

It plans to engage cryptocurrency specialists who will work across the country and in all areas of digital currency.

In addition the Petro will not be supported solely by oil. Maduro plans to allocate Arco Minero gold deposits from the Orinoco belt to Petro with the country’s diamond deposits.

In addition, the operation of the cryptocurrency will be supervised by the Cryptocurrency Superintendence and the Blockchain National Observatory.

Petro details

To explain in more detail how Petro works, the Venezuelan government has published a gazette. It describes in 13 parts the decree concerning the Petro.

Thus, in one of the articles we learn which assets will support the Petro. And as we said, besides oil, there will be gold, diamonds, coltan and gas.

Another article discusses the nature of the portfolios containing the Petro as well as the exchanges.

In addition, the Petro will be issued by an ICO.

According to Article 8: “the initial investment will be by auction or direct sale made by the Superintendency of Crypto-assets and related Venezuelan activities.”

Regarding the issue date of Petro Maduro announced: “In the month of January, I will present all the conditions for the Petro to start operating.”