Oil Backed Crypto – The Petro

The Venezuelan President Nicolas Maduro has been a strong supporter of Cryptocurrency. With Petro the pre mined oil backed cryptocurrency gaining momentum it is of no surprise he has taken another higher part for Cryptocurrencies in terms of Oil.

Petro Crypto
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Next in Maduros agenda is an OPEC (Organization of the Petroleum Exporting Countries) support for the Petro. He does not want Petro to just be backed by Venezuela’s oil market but instead by countries of the OPEC.

Maduro stated-

 “I am going to officially propose to all OPEC and non-OPEC producing countries that we adopt a joint cryptocurrency mechanism backed by oil.”

If OPEC hops into the Petro cryptocurrency, there are certain factors that will help elevate Petro’s stance in the market.

14 oil producing nations are part of OPEC which include Saudi Arabia, Nigera and Iran. This means a greater influence in The Petro in terms of gaining popularity.

Venezuela is currently facing an issue in terms of the economy. Therefore the Petro will not advance in the right manner if OPEC does not get nvolved.

The Petro is not just a way of oil being backed up in a cryptocurrency. It is a way of Venezueala to solve their embargo problems thanks to the United States. The petro will allow a freedom in capital movement between member nations to the Petro.

The United States has understood the main intentions and have warned the public-

“The petro digital currency would appear to be an extension of credit to the Venezuelan government … [and] could, therefore, expose US persons to legal risk.”

Looking at the bigger picture, The Petro will have 100 million units released on February 20th and will help countries which have been in issues due to problems with embargoes.

So far certain nations such as Iraq want to get into the mix of cryptocurrencies such as The Petro. Iraq is in strong support due to inflationary pressures on their own domestic fiat backed currency.