In February this year, Petro Crypto was created and was said to be backed fully by the country’s oil resources.
However, the unexpected happened on Monday when Nickolas Maduro, Venezuela’s President announced the launch of the petro as a national currency. Maduro said in a live television:
“Venezuela makes history! Today we take a step forward with the launch of petro as a national currency and platform for strengthening our financial sovereignty.”
Telesur TV subsequently quoted him declaring that the petro, “unlike other digital currencies, doesn’t need to be mined because it already has a value; it is shielded with Venezuelan oil and mining wealth.” According to the publication, Maduro was also referring to “the country’s gold, diamond, iron, and aluminum.”
What The New Whitepaper Revealed
A new whitepaper has also been published showing that the petro is no longer 100 percent backed by oil but is also backed by some of Venezuela’s other resources.
Following Monday’s announcement, the Venezuelan government published a new whitepaper for the petro.
Unlike the former whitepaper, the new version states that the petro is using Dash’s X11 mining algorithm for Proof of Work, as well as a staked masternode system for Proof of Stake verification. The hybrid system will employ four-megabyte blocks and a one-minute block interval.
The whitepaper also revealed that crypto Petro is no longer back by oil fully. Rather, it is now backed by 50 percent oil, 20 percent gold, 20 percent iron, and 10 percent diamond.
The President also discloses that Petro is “presently in the world’s six topmost international exchange houses.” He added, “The petro is already present in the world’s six topmost international exchange houses and will now be accepted at a national level.”
What is meant therefore is that, Venezuelans can now use the Petro Crypto to pay for goods such as airline tickets, hotels and the like as Petro coins are now a legal substitute to dollars.