Venezuela Has Officially Launched Its Cryptocurrency Oil

Venezuela has officially launched what its President Nicolas Maduro says is the first government-backed digital currency “El Petro”, which experts and analysts consider as not that other as fraud and another attempt to circumvent sanctions and to disguise the failure to rebuild the ailing domestic economy.

In recent months, Maduro has touted a new economic recovery plan that includes a new fuel pricing policy that will raise Venezuela’s super-cheap gas prices for the first time in two decades. The plan to mitigate the acute economic crisis also included the devaluation of the currency and the linking of new bolivars to oil.

The official public sale of oil, which Venezuela says is supported by oil, natural gas, diamonds and gold, will begin on November 5, Maduro said.

According to the Venezuelan authorities, “oil is an instrument for strengthening Venezuela’s economic stability and financial independence, combined with an ambitious and global vision of a freer, more balanced and fair international financial system.”

Experts and analysts are skeptical that the Venezuelan cryptocurrency is really secured by oil assets and minerals.