The End of the Venezuelan Petro
Reports suggest that the Venezuelan Petro, one of the first state-backed cryptocurrencies, is facing liquidation. Asonacrip, a cryptocurrency group in Venezuela, has shared information about the upcoming liquidation process. It is expected that all petros in circulation will be automatically exchanged for the Venezuelan fiat currency, bolivares.
Government Liquidating Crypto Assets
Aside from the petro, other crypto assets held by users in government-managed accounts are also being liquidated and converted to bolivares on January 15. The lack of official communication regarding the future of the cryptocurrency asset comes after a corruption scandal involving Joselit Ramirez, the former head of Sunacrip, the cryptocurrency watchdog.
Troubled History of the Petro
The Petro blockchain faced operational issues in May, leading to transaction blockages. Recently, the petro has been primarily used as a unit of account for certain state-related payments rather than as a payment cryptocurrency. Its value was initially set at $60, equivalent to the price of a Venezuelan barrel of crude in January 2018.
Rumors of Liquidation
This is not the first time that sources have hinted at the end of the Venezuelan Petro. Back in June, reports stated that the government had already made the decision to liquidate the petro and was negotiating payments with the largest holders of the cryptocurrency. The petro gained popularity in 2019 when President Nicolas Maduro distributed half a petro to citizens and paid pensioners Christmas bonuses in the form of the cryptocurrency asset.
Hot Take: Uncertain Future for the Petro
With the news of the upcoming liquidation and lack of official communication, the future of the Venezuelan Petro remains uncertain. The petro’s troubled history and recent disuse as a payment cryptocurrency indicate the challenges it has faced. It remains to be seen how the liquidation process will unfold and the impact it will have on Venezuela’s cryptocurrency landscape.
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