A Fraud: Venezuela’s National Assembly Declares Petro Unconstitutional

A Fraud: Venezuela’s National Assembly Declares Petro Unconstitutional

Venezuela’s Assemblea Nacional [National Assembly] recently declared it believes the country’s oil-backed cryptocurrency, the Petro (PTR) is unconstitutional. Through a public statement, the lawmakers denounced the cryptocurrency as a fraud, and a threat to those who invest in it.

In the public statement, the lawmakers criticized the cryptocurrency’s token sale in general, which reportedly already raised $735 million. To the country’s National Assembly, the Petro is merely a symptom of the country’s ongoing political crisis.

The lawmakers criticized the government’s “forced demand” for the cryptocurrency, as it was planning on forcing business and retirement accounts to accept the cryptocurrency. Rafael Guzm?n, president of the body’s finance committee, claimed the Petro is way for the government to embezzle funds.

Per Guzm?n, the oil-backed cryptocurrency isn’t the solution the country needs, as it won’t provide Venezuelans with food and medicine. Instead, Guzm?n argued (roughly translated):

Another lawmaker, Francisco Sucre, pointed out that national assets can’t be used as collateral, implying the oil-backed cryptocurrency can’t be backed by Venezuela’s oil reserves. To him, the reported $735 million raised through Petro’s token sale should be used to support Venezuela’s ecosystem.

Sucre added that the country’s situation is “becoming more jeopardized” as no one knows the origins of those investing in the Petro, and no one can guarantee the cryptocurrency’s value. Another lawmaker, Carlos Propseri, even claimed the Petro isn’t the country’s first digital currency.

As Prosperi pointed out, the country has used a digital currency dubbed Sucre, which has been promoted as a currency that was set to evolve into a hard regional currency, similar to the Euro. Prosperi argued:

As covered by CCN, the Petro was introduced as a tool for Venezuela to bypass US sanctions. Since the beginning of its token sale, Venezuelan leader Nicol?s Maduro ordered state-owned companies and the country’s airlines to accept the cryptocurrency.

Chinese credit rating giant Dagong has claimed the Petro “may help the global currency system.” Venezuela’s opposition-run congress, on the other hand, claimed its sale is an “illegal and unconstitutional” instrument to mortgage the country’s oil reserves.

On February 22, Maduro claimed he was going to launch the Petro Gold, a cryptocurrency backed by precious metals, “next week.”

Featured image from Shutterstock.

07.03.2018 / 05:20 69
Petro is a Terrible Investment (If You Didn’t Already Know) Petro is a Terrible Investment (If You
Near the middle of February, collapsing socialist country Venezuela launched Petro — the world’s first state-issued cryptocurrency — purportedly
Cambodia May ‘Follow Venezuela’ With National Entapay Cryptocurrency Cambodia May ‘Follow Venezuela’ With
Venezuela issuing its Petro cryptocurrency has inspired Cambodia to release its “own cryptocurrency,” according to the local Blockchain industry.
Venezuela Launches Free Cryptocurrency Training Course For Citizens Venezuela Launches Free Cryptocurrency
The Venezuelan government launches a free training course to teach its citizens how to buy, sell and mine cryptocurrencies following launch of Petro
What Venezuelans Are Saying About the Petro What Venezuelans Are Saying About the
Social media has been abuzz since Tuesday's initial sale of the forthcoming Venezuelan government-backed cryptocurrency, the petro, though reviews
Venezuelan President Orders Airlines to Accept Petro, Cryptocurrencies for Tickets Venezuelan President Orders Airlines to
Venezuela’s oil-backed cryptocurrency keeps making headlines, as the country’s cryptocurrency superintendent, Carlos Vargas, recently announced that
Venezuela’s Petro “May Help the Global Currency System”: Chinese Credit Rating Giant Venezuela’s Petro “May Help the Global
Dagong Global Credit Rating, one of China’s biggest credit rating agencies, recently published a report commenting on Venezuela’s oil-backed
Comments (0)
Add a comment
Comment on