Venezuela Wants to Exchange Oil for Crypto
Nicolas Maduro, president of crisis-torn Venezuela, said the country will begin selling its own oil for national cryptocurrency Petro next year. According to Maduro, this move will allow the country to get rid of the dollar's domination in the global system and diversify global markets. It will also help to circumvent the international sanctions imposed by the United States.
Maduro revealed plans after meeting with Russian President Vladimir Putin. According to the president, Russia is already selling oil for the Chinese yuan. Venezuela will use this experience and will begin to sell oil for the cryptocurrency.
Last month, the Venezuelan government promised to present OPEC to Petro. Allegedly, Petro should become the main cryptocurrency in the world, backed by oil.
Since 2014, the economic condition of Venezuela is inexorably worsening. The country cannot get out of the crisis and get rid of hyperinflation. According to the IMF, inflation in 2018 will be 1.3% million. And next year, consumer prices will jump by another 10% million.
To save the country's national currency from devaluation, the Venezuelan authorities developed cryptocurrency Petro. According to the plan, it should be fully backed by oil and tied to its value. Authorities do not provide reports of Petro binding to the “black gold”. International investors look at it with caution, because the US imposed sanctions against Petro immediately after the creation of cryptocurrency.