President Maduro agrees to sell gold & oil in exchange for Petro

Venezuelan President Maduro is now willing to sell the country’s most valuable mineral assets, gold and oil for Petro as a means to successfully introduce this debatable cryptocurrency into people’s lives, Yahoo Finance reported on 4th Jan 2020.

While the rest of the world rubbishes the concept behind cryptocurrency Petro and dismisses it as being a joke, Maduro is determined to show those people what it actually means to the Venezuelans and how it can purportedly help the country move away from hyperinflation. Many also ridiculed the government for imposing China-like authority through Petro. Unfortunately, apart from a couple of exchanges and its official wallet, the crypto has been unable to find any takers so far.

President Maduro takes “Petro push” a little too far

However, that hasn’t deterred the Venezuelan leader from exerting his authority and influence on his country’s people. In the latest move, he agreed to sell the country’s oil and gold produces in exchange for its official cryptocurrency. According to his announcement to the local news agency, El Nacional, the President confirmed that since the country is already accepting Petro for Venezuelan iron ore and steel and that the recent initiative is only an extension of it.

We have already initiated sale agreements for other essentials like iron, steel, and aluminum. Now, we will kick start the sale of gold and oil for Petros, he said.

Maduro also believes that he has, in fact, successfully integrated Petro into the daily lives of the citizens. Last month, he claimed it as nothing less than a technological marvel. According to him, several public sector employees and retired workers have benefited from the digital currency as it has enabled them to make hassle-free purchases. Per me, Venezuela leads by example, Maduro asserted.

While, on the one hand, is Maduro’s unceasing determination towards catapulting Petro’s adoption, experts, on the other hand, believe that this move is likely to depreciate the country’s already worsened economic conditions.

Gold and oil for Petro: Boon or bane?

Experts are of the opinion that the harsh US sanctions have left the country with nothing but a few oil reserves to offer to the world. Apart from that, it has made no substantial contribution to the world’s financial system. Selling these precious commodities for a currency that finds absolutely no mention in the global monetary framework may not be as wise as the President claims. 

That said, Maduro is in no mood to hold back. Among the many tactics he has used to promote the use of his beloved crypto, he also announced the issuance of Petro-based holiday bonuses to pensioners in Venezuela last year.

Featured Image by Flickr