One of the newest members of the crypto world, Petro has already created a name for itself in quick time. The coin is the only state-backed coin yet in the Crypto world. It has an innovative idea behind it of a currency backed by Raw materials.Petro token raised more than 4.777 billion yuan, or $735 million in its first 6 months of service.
The Venezuelan government has lots of high hopes on it. They are planning to stabilize their Economy using this coin.
Recently there was a news flash that Venezuela is offering India 30% discount on oil imports if it traded using the Petro Coin currency. Most of the people in India got excited listening to this as the petrol prices in India are very high and this deal would have provided them with some much-needed respite. But everything in this news is not as good as it looks.
1.Venezuela is a member of OPEC (Organization of the Petroleum Exporting Countries) which is headed by Russia and Saudi Arabia.This organisation basically works for reducing oil supplies to increase the Price. Do you think ever such an organisation would allow one of its members to give 30% discount?
Importing oil from Venezuela can attract the ire from America as it is under sanctions from the US.
India has been importing petrol from Iran for a very very long time and importing Venezuelan oil would mean angrying an old friend which has been helping us a lot in matters relating to Pakistan.
4.To increase its activities in India they had struck a deal with Coinsecure which as of now is closed down after an attack on its servers on 9th of April this month resulting in a loss of 438 bitcoins. Although they are preparing a new and better server, the start to Petro in India does not look good.
Overall the deal doesn't look as good and sweet as it was at the first sight.
