Venezuela Abandons "Oil Cryptocurrency" Petro

Venezuela's experiment with its state-backed cryptocurrency, Petro, has come to a disappointing end. The digital currency, also known as PTR or El Petro, was introduced in 2018 with the aim of helping Venezuela bypass U.S. sanctions. Unfortunately, it never gained widespread adoption. Petro could only be traded on the government's sole platform, Venezuelan Patria, which lacked even basic security measures like two-factor authentication.

The launch of Petro followed a severe devaluation of Venezuela's national currency, the bolivar. At that time, many Venezuelans turned to Bitcoin and other cryptocurrencies to preserve their savings. The government, led by Nicolas Maduro, had envisioned Petro as a cryptocurrency backed by the country's vast oil reserves, hoping it would reduce the outflow of funds from the economy and be used for oil purchases in the future.

Despite efforts by Maduro's government, Petro never gained traction on international exchanges. Furthermore, the government did not recognize El Petro as legal tender within the country, limiting its everyday use among the population. However, it could be used for paying taxes.

As of January 15th, 2024, the Petro experiment will officially come to an end, marking the end of an ambitious but ultimately unsuccessful venture.