Today started selling Venezuelan cryptocurrencies El Petro. The President of the country Nicolas Maduro has announced in his Twitter. According to him, the treatment will be 100 million units of Petro El at a price of $ 60 each.
El Petro can be used for payment of goods or services, payment of taxes, fees and duties in the country, as well as exchanged for currently in circulation paper money. The course will depend on the volume of transactions in all exchange offices, received from the authorities a permit to conduct activities.
The initial value of the cryptocurrency is pegged with the price of a barrel of Venezuelan oil. Such binding made due to the fact that El Petro — the world’s first digital money with collateral in the form of real oil. In particular, according to the order Maduro has been reserved 5 billion barrels of oil from the Ayacucho field in the oil belt of the Orinoco river. The authorities expect that cryptocurrency will successfully attract funds from abroad.
Caracas desperate for money to serve its debt obligations under the us financial sanctions. In recent months, the international rating Agency Standard & Poors (S&P) downgraded the credit rating of Venezuela according to the number of bonds to default level “D” with “SS”, and Fitch assigned the country rating to “restricted default” (RD) on liabilities in foreign currency.
Currently, according to experts, the debt of Venezuela can range from 120 billion to $ 150 billion. Of this amount, commitments the state oil company Petroleos de Venezuela SA (PDVSA), and it is to cope with payments. However, PDVSA has repeatedly delayed delivery of oil to China and Russia.
In this situation, even the “straw” in the form of issue of cryptocurrencies may seem like a reliable way to get out of the financial swamp. In support of the El Petro has already made known Venezuelan economist Luis Enrique Gawazat who believes that Caracas will attract huge capital.
However, other experts disagree Gavaston. So, Ricardo Hausmann, a former planning Minister in the government of Venezuela under President Carlos Andres Pérez (1989-1993), is convinced that “El Petro will be a failure”.
“This is another statement that in the country something to “change”, but I don’t see that it could really change in any significant degree… the Problem of Venezuela is not in what form to make the payments and that to pay her nothing,” Hausmann said in an interview with the newspaper El Nacional.
So the issue of El Petro, according to the economist, only a new issue of government debt. Selling cryptocurrency if it can find buyers, perhaps even for some time will smooth the sharpness of the Venezuelan crisis, but systematically solve the financial problems of the country Petro El not.