The end of the petro cryptocurrency is confirmed in Venezuela

This cryptocurrency was launched in 2018 with the aim of overcoming US sanctions and creating new sources of funding in the country.

Mass is said for the state cryptocurrency in Venezuela: the petro is now a thing of the past. Officially, the government refuses to talk about a definitive shutdown, but it is no longer mentioned anywhere. And there is one crucial technical detail: the state-owned crypto platform Patria, which made it possible to use it, has announced that all crypto wallets will be closed and liquidated in the bolivar, the local currency.

When the project was launched in 2018, it was ambitious: to create a truly sovereign cryptocurrency backed by Venezuela’s oil reserves, to overcome the US economic blockade that the country has been subject to for 10 years, and to finance economic and social development.

The project had several strengths: the rate of use of cryptocurrencies by the population is slightly higher than the average of developed countries, a little more than 10%, as well as an easy and cheap mining industry on the ground, since Energy is largely subsidized. in Venezuela.

Catastrophe

But with peter it was the same as with the country’s management of unexpected oil, a disaster. It’s already a usability failure. Only a handful of Venezuelans used it to pay government bills, taxes, etc. Additionally, the blockchain that managed the petro showed regular technical glitches.

The final straw was a corruption scandal involving several high-ranking officials of the state-owned oil giant Petroleos de Venezuela (PDVSA) with several billion dollars in suspicious flows facilitated by the use of oil.

In short, Venezuela is throwing in the towel and snuffing out an initiative that has certainly caused more problems than solutions.

Antoine Larigaudrie edited PA

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