Venezuela to issue national cryptocurrency

"I have ordered the issuance of 100 million petros with the legal support of Venezuela’s oil wealth,” said Venezuelan President Nicolas Maduro during a meeting with ministers.

According to Maduro, each petro will have a value equal to the price of the oil barrel on the country's market (around $59). On January 14, the meeting of new cryptocurrency miners is planned. The government has already opened a registration for all those who wish to take part in the production of petro.

Maduro announced plans for the creation of a national cryptocurrency in early December last year. According to the president, the use of new technology will help the country to overcome the social and economic crisis. Maduro said back then that digital money would be backed by natural resources, including diamonds and oil.

Venezuela is currently experiencing one of the worst crises in recent decades, accompanied by a rapid price increase and the devaluation of Bolivar, the national currency. A sharp drop in oil prices in 2014 may be one of the objective prerequisites for such a difficult situation. Another reason, according to an increasing number of local residents, is the government's inefficiency. In May last year social unrest led to mass protests.

To feed themselves and earn some money, many local residents tend to find a way out in mining. The production of cryptocurrencies in Venezuela is considered very profitable compared to other countries, primarily because of low electricity costs. At the same time, according to some reports, local authorities apply repressive measures against those who make money with cryptocurrencies and do not want to share what they have earned.