By CCN: The petro token, one of the last financial schemes crafted by Venezuelan President Nicolás Maduro, will likely fall by the wayside like his regime if the uprising against him is successful.
This is the corrupt, illegitimate Maduro Regime. pic.twitter.com/79sFbYrzOp
— The White House (@WhiteHouse) April 30, 2019
In a move that caught many in the global community off guard, Venezuelan opposition leader Juan Guaidó called for the military to rise up and oust Maduro. As people flooded the streets in what was complete chaos, more questions arose as to what will happen to the petro.
One thing is for sure: there is little appetite for the petro. Instead, bitcoin seems to be trading feverishly in response to the uprising as investors once again prove they see it as the best crypto option.
— Bitcoin update (@btc_update) April 30, 2019
Venezuelan volume totals on LocalBitcoins reached roughly 36 billion bolivars for the week ending April 27. That’s the highest it’s ever been.
Maduro Pleads for Buyers While Citizens Say Get Out
Last week, Maduro reportedly made a plea to overseas investors to buy the petro over bitcoin.
— Crypto Trader Pro (@CryptoTraderPro) April 25, 2019
In a Periscope video, he asked for people to exchange their hard currency for the crypto, saying:
“We welcome all those who will invest in finance and banking sectors and in the cryptocurrency petro.”
Crypto Panic: Nicolas Maduro urges wider purchase of Petro [PTR] as crypto-adoption surges in Venezuela https://t.co/7MrFGvOJXL 🙋Crypto Cashflow via → https://t.co/4sRUrToww3 pic.twitter.com/qA5TZVRGKF
— Crypto Trader Pro (@CryptoTraderPro) April 26, 2019
At least one player may still be buying the petro, and that's Russia. When Maduro announced the crypto, he said:
“Russia is buying and selling oil and derivatives in yuan...We are going to sell all our produced oil with Petro."
Petro’s Unsavory Reputation
From the moment Maduro began bandying about the idea to create the petro, critics pounced. While it was supposed to be backed largely by the country’s oil reserves, questions arose about the value of the reserves.
And although Maduro touted the petro as a means to help the country right its financial ship, many smelled a rat. They believed Maduro pushed for the token as a means to circumvent U.S. economic sanctions.
Since it supposedly began ready to trade in December 2018, the exact value of the petro has been hard to nail down. CCN reported the Venezuelan government has pushed for the petro’s adoption. Maduro even ordered local banks to accept it and revealed that Venezuela “may” charge for exports in it. The way things are looking for both his presidency and the cryptocurrency, he may never get the chance.