World Video | Defence | Foreign Affairs | Natural Events | Trade | NZ in World News | NZ National News Video | NZ Regional News | Search


Venezuela’s cryptocurrency to be backed by natural resources

Venezuela previously announced their intention to step into the crypto spotlight by creating their own digital currency, the Petro. The country’s president, Nicolás Maduro, noted that the creation of the state-controlled crypto is a way to “innovate toward new forms of international finance for the economic and social development of the country.”


It could also be due to the fact that the crypto industry has grown exponentially in Venezuela on the back of the country’s economy suffering high levels of inflation and the introduction of US-led financial sanctions. Maduro made reference to the latter, stating that the purpose of the Petro is to “advance the country’s monetary sovereignty, to carry out financial transactions and to defeat the financial blockade against the country.”


According to RT, Maduro has now confirmed that Venezuela’s first cryptocurrency will be backed by five billion barrels of crude oil. While holding a folder during a speech on the country’s national television network, Maduro announced:

Here’s the document formalizing the provision of the certified Ayacucho oil field No.1 in the Orinoco Petroleum Belt for the support of El Petro cryptocurrency.

According to the president, this specific field’s reserves amount to approximately five billion barrels of oil.

Maduro went on to add:

Every single Petro will be backed by a barrel of oil. We will set up a special team of cryptocurrency specialists so they will be engaged in mining in all states and municipalities of our country.

In addition to oil, Maduro has stated that gold deposits from the Arco Minero del Orinoco belt, as well as diamonds from the country’s natural reserve, will also be supporting the digital currency.


Venezuela is not alone in their quest to benefit from the advantages of digital currencies. Russia has announced plans to create their state-operated CryptoRuble, while Israel has plans of their own, recently declaring their intent to develop their own digital shekel. Dubai is also on board the blockchain train through the development of their state-run emCash cryptocurrency.


The term ‘state-controlled crypto’ is an oxymoron in itself in that one of the main aims of digital currencies is that they are decentralized and not run by a single entity, like the government.

However, 2017 has shown that cryptocurrencies are set on their path to disrupting the status quo, and perhaps governments are seeing that they can either be a part of the digital revolution, somehow, or lose their well-established hold on their countries’ economies.

© Scoop Media

World Headlines


Gordon Campbell: On The Chemical Weapons Attack (and Response) In Syria

The past week’s headlines about the chemical attacks in Syria – and the military response by the US, France and Britain – have tended to overshadow a few of the downstream outcomes. More>>


Pacific Moves: China, Vanuatu And Australia

Washington’s vigilant deputy, doing rounds on the beat in the Pacific, has been irate of late. The central issue here is the continuing poking around of China in an area that would have been colloquially termed in the past “Australia’s neighbourhood”. More>>


Diplomatic Madness: The Expulsion of Russian Diplomats

How gloriously brave it seemed, some 23 nations coming together like a zombie collective to initiate a fairly ineffectual action in of itself: the expulsion of Russian diplomats or, as they preferred to term it, intelligence operatives. More>>


Campbell On: the US demonising of Iran

Satan may not exist, but the Evil One has always been a handy tool for priests and politicians alike. Currently, Iran is the latest bogey conjured up by Washington to (a) justify its foreign policy interventions and (b) distract attention from its foreign policy failures. More


Cyclone Gita: 70% Of Tonga Population Affected

The full scale of destruction is beginning to emerge from Tonga in the aftermath of the severe tropical cyclone Gita. Around 50,000 people, or almost 70% of the country’s population, have been affected, a third of whom are children. More>>


  • Pacific.Scoop
  • Cafe Pacific
  • PMC