Petro is an oil-backed Cryptocurrency propose by Venezuela. It would be a supplementary currency with existing currency. Petro was announced by Venezuelan President Nicolás Maduro in a televised address on 3 December 2017. President Maduro said that petro would be backed by country's reserves of oil, gasoline, gold and diamonds. It is learned that pre-sale of petro will be on February 20th.
1 Petro = 1 Barrel
Petro would be the first digital currency backed by the central government. It is historic in that sense. If this project becomes successful more and more central government will think about Cryptocurrency. Currently, They are thinking about government-backed digital fiat currency.
The petro, or petromoneda, is a cryptocurrency proposed to be adopted by Venezuela. Announced in December 2017, it would be backed by the country's oil and mineral reserves, and it is intended to supplement Venezuela's bolivar fuerte currency as a means of securing international financing Source
US Senator Marco Rubio is not happy with this decision of introducing government-backed Cryptocurrency Petro. Currently, Venezuela is facing sanctions from USA. Some believes that Petro is launched to bypass different sanctions.
The most interesting part is that Mining Bitcoin or other Cryptocurrencies were illegal in Venezuela. It is heard that Government prosecute lots of people for mining Bitcoin. But now Venezuela's government announced that Mining Bitcoin or Other Cryptocurrencies is completely legal. No one is breaking the law. wow !!! complete U-Turn. Good news for the Cryptocurrency enthusiasts.
Though Some praised the decision to introduce Government-backed Cryptocurrency, Some people also denounce the decision including USA senator Marco Rubio.