Venezuela starts pre-sale of Petro cryptocurrency

Venezuelans struggling to make ends meet

Venezuela Launches Official Cryptocurrency to Boost Its Economy

The country hopes to see investment from countries like Qatar and Turkey. Lopez is under house arrest on charges of inciting violence, while Venezuela's comptroller general a year ago banned two-time presidential contender Henrique Capriles from running for office on charges of "administrative irregularities" found during his time as governor.

He's planning to back the crypto with revenue from country's oil, which is dwindling. The governmental support of blockchain technologies may breathe life into the internal affairs of the country.

The Bitcoin-esque petro (the code for which is "PTR") is part of a drive to overcome the U.S.'s economic blockade against Venezuela and rescue the national economy.

The manual of acquisition and commercialization of the Petro will now be available and will begin the pre-sale of this digital currency with 82.4 million units available. Because of that, it could expose US citizens to legal risks.

At the end of previous year, President Maduro declared intention of Venezuela to create their own cryptocurrency, which can be used on the territory of the specified state as a means of payment. Under Venezuelan law, the parliament has to approve any government borrowing.

Whether the country's leaders are oblivious to these warnings, or simply do not care, the sale is moving forward.

"On Tuesday, there will be quite a few announcements about the start of the process", Vargas said on the sidelines of a political meeting in Caracas. Furthermore, the US Treasury Department has warned that US citizens could be violating sanctions by investing in the Petro.

How could a country that is home to the most valuable commodity on the planet fall into such dire financial straits?

"In the history of Venezuela and in fact the history in other Latin American and South American countries, often times, it is the military that handles that", he said, according to Reuters. The situation could get worse before it gets better. After the Constituent elections in late July, the U.S. initiated a fresh round of sanctions against Maduro himself as well as other of his top officials, but the aggressive power grab continued undeterred with governor and mayor elections that the opposition also denounced.

Still, the Maduro government is pressing ahead.

These sanctions - levied a year ago by Washington - block USA banks and investors from acquiring newly issued Venezuelan debt, effectively preventing the country from borrowing overseas to bring in new hard currency or refinance existing debt.

If successful, the transaction could hypothetically raise $2 billion or more, according to some estimates. They were originally to be sold starting on February 15. The country will be offering 100 million Petros to investors in two days beginning Tuesday.

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