Petro Token: Venezuela Government rejects oil-backed cryptocurrency

Venezuela government is labeling information as false which stated that it is going to launch a cryptocurrency which would be backed by oil.

Even though the government did not exactly specify what constitutes the false information but the white paper which announced that the government would be launching a cryptocurrency based on oil has been rejected by the government.

Even though, the government stated that the white paper hasn’t been launched by them but they were quick to add that it would be launched as soon enough.

It was first reported on Reddit and the document also surfaced on the website which stated that the government would actually launch of oil-based cryptocurrency. However, in the same post, it was stated that it is not yet confirmed by the government.

The name of the cryptocurrency was stated as petro token last month. According to the white paper, one of the main reasons why this cryptocurrency is being launched is to help the government tide over the financial crisis. The Fiat currency of the government is being subject to high inflation. That is why the value of the fiat currency is constantly on the decline.

Also, the opposition is already gunning for the government as the government launches notes of higher and higher denomination in order to deal with the inflation. The legislature is controlled by the opposition forces. Also, the proposal of the woman to launch a cryptocurrency has been declared as illegal by the Congress. That is why, if at all the government plans on launching such a token, it would be very difficult for it to do so.

With that being said, it would be one of the 1st which is being launched by the government of the country. If indeed, the government comes out with a white paper, it will surely be a positive sign for the cryptocurrency world. This would mark the increasing legitimacy of the cryptocurrencies. This is one of the main reasons why it is being closely watched whether the Venezuelan government actually comes out with such a white paper or not. For now, however, it is declining the white paper which has been posted online. With the Press of the country stating that the white paper would be launched soon, there is definitely a hope. Also, once a single country undertakes such a measure which adopts cryptocurrencies, it would be just a matter of time before the other countries do the same.

Adam Webb is editor in Smartereum, blockchain and currency news, where he produces updates on Blockchain, Ethereum and other alternative cryptocurrencies.

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