Venezuela launched what it claimed to be the world’s first sovereign oil-backed cryptocurrency last month called the Petro. Venezuela’s President Nicolas Maduro said that each Petro token is going to be backed by a barrel of Venezuelan crude, which the country has lots of, it actually has the world’s largest proven oil reserves. Many saw it as a ploy by the country to circumvent its economic challenges and sanctions imposed by the United States which is probably why President Trump has issued an executive order banning the use of Venezuela’s cryptocurrency in the United States.
Petro’s initial value was set at $60 which was equal to the price of a barrel of Venezuelan crude in mid-January. Maduro had said that a total of 100 million Petro tokens would be issued thus giving this cryptocurrency a cap of $6 billion.
Maduro claimed on the first day of pre-sale last month that the Petro cryptocurrency had raised $735 million for the country though some analysts have since disputed that claim.
The executive order issued by President Trump has banned all transactions happening in the United States related to “any digital currency, digital coin, or digital token, that was issued by, for, or on behalf of the Government of Venezuela on or after January 9, 2018”
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