Few months after the Venezuelan Parliament approved the legitimacy of – the country’s indigenous oil-backed cryptocurrency, the country is now offering India a 30 percent discount on oil purchase if it was transacted on Petro.
On account of this development, a team of cryptocurrency experts from Venezuela’s blockchain department left for India in April to discuss the deal in detail. After the discussions, the Venezuelan experts partnered with Coinsecure an Indian-based cryptocurrency exchange to sell the Petro in India. Accordingly, the currency would be launched immediately after the presidential elections in Venezuela, which are set to take place on May 20. Presently, India’s oil imports from Venezuela average around 300,000 barrels per day (Bpd) between November 2017 and February this year.
The Petro is a government-backed cryptocurrency developed in Venezuela country and sponsored by the Venezuelan President Nicolas Maduro who although without proof that the currency has generated about $735 million USD just a few days after it was launched. The currency was first revealed back in December by the government while setting up an agency to oversee the project development.
While commenting on the affair, the Chief Executive Officer of Coinsecure Mohit Kalra disclosed that the Petro would be added to its platform so that it’ll be offered to the public. He noted that the Venezuelans were “going to different countries and making offers. The offer that they have given to the Indian government is: you buy Petro and we will give you a 30 percent discount on oil purchases.”
Although by the Venezuelan government elected parliament, the Petro has drawn a lot of from various financial think-tanks especially the Brookings Institute which claims that the digital currency would destabilize Bolivar –the Venezuelan official currency.
Critics also noted that the Petro was initiated as an avenue to circumvent US Government economic sanctions on the country due to its human rights violations. Ironically, the Petro has benefited from the US Government ban in what by the Venezuelan President Nicolas Maduro calls “free publicity.”
Nevertheless, Venezuelan government plans to make the Petro its official currency by 2020. The country has also claimed it will have a positive impact on its economy in “three to six months.”