Venzuela's president Nicolas Maduro announced the creation of the country cryptocurrency. The petro will be backed by the resrves of oil, gas, gold and diamond of the country. A blockchain venezuelan observatory is working on the legal and institutional basis.
Cryptocurrencys in Venezuela
Due to distortions created in it's exchange market created by Dollar today, mining cryptos has become a source of income into its people and gaining in popularity. Because of the low cost of energy and increasing price of dollar mining activity has become very attractive and profitable like a saving mechanism and access to foreign exchanges. But this activity have been seen as the responsible for damaging the electrical service for its high consumption.
Venezuela is one of the countries sanctioned by the US limiting the country to get access to the finnancial market and its use, which is deeply tied to US dollar.
This action is part of a finnancial strategy seeking alternatives to the limitations that the country face by US banking system and be able to make payments and import vitals products for the people. In this struggle venezuela started to sell oil in yuanes and migrate payments and importations progressively to european and asian banking raffling US blockade.
Taking all this into account it is probable that algorithm used for the crypto is one of the seen in currencies like monero or zcash allowing privacy for creditors.
Still have not been announced the amount of petros that will be emited and its conditions, so like the amount of oil, diamond and gold that will back it.
This will give a lot to talk about it. Let's see US reactions.