The Venezuelan government has taken an unprecedented step and legalized cryptocurrency mining. This is just before the launch of its own cryptocurrency the Petro coin which is slated to happen next month.
The local news outlet in the country stated that the cryptocurrency superintendent, Carlos Vargas confirmed that the citizens who are looking into mining cryptocurrencies are not doing anything illegal.
Last year, the government, as well as authorities in the country, made headlines when they started cracking down on mining operations indicating that the mining activity is actually illegal. Thus, the current statement is actually in stark contradiction with the earlier stand of the country.
The country further confirmed that the Petro coin would be launched and the presale would start on February 20. The announcement of Petro coin had received a mixed reaction from the other countries. That is why the future of the coin was actually not certain.
With the latest information, the country is sure that it is very serious about launching the cryptocurrency. Also, according to the president of the country, the cryptocurrencies would actually help them tide over the financial crisis which the country is currently facing.
According to the opposition of the country, the coin is nothing more than a fraud.
The petro coin would actually be backed by the oil reserves of the country. A single coin would be worth at least one barrel of oil. Thus, the overall value of the coin would be around $ 6 billion. This would help the government race significant amount of money in a shorter period of time.
It remains to be seen whether any of the other countries are launching their own cryptocurrencies or not. For now, however, Venezuela seems to be the only country which is launching its own cryptocurrency.
Needless to say, if the response to this cryptocurrency is quite good as compared to some of the other decentralized cryptocurrencies, more and more countries would be actually inclined to launch their own cryptocurrencies. This would lead to a race but the positive thing about these cryptocurrencies would be that they would be actually backed by some or the other kind of assets.
This would make the cryptocurrencies more valuable as compared to some of the other cryptocurrencies which are currently not based on any other asset. Thus, the response of the investors to these cryptocurrencies would be closely observed as more countries would look into this money in the future by the same route.