Maduro Proposes OPEC Oil-Backed Cryptocurrency

Maduro Proposes OPEC Oil-Backed Cryptocurrency

in News
President of Venezuela Nicolas Maduro encourages the world’s major oil producers to create a mechanism for issuing cryptocurrencies. Caracas is starting the pre-sale of its own oil-backed digital currency, the petro, this month. After meeting with OPEC Secretary General Mohammed Barkindo Maduro told reporters and said Barkindo was enthusiastic about the idea:
“I will make an official proposal to all OPEC members and non-OPEC states to work out a joint cryptocurrency mechanism backed by oil.”
Maduro has also praised the deal on oil production cuts between OPEC and non-OPEC, saying it should be extended for at least another five years:
“I want the Joint OPEC-Non-OPEC Monitoring Committee to operate for at least five more years as we have already had great achievements.”
OPEC consists of 14 nations: Algeria, Angola, Ecuador, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates, and Venezuela. Venezuela’s president first floated the idea of a cryptocurrency in December amid the bitcoin price rally. He put the idea forward as a way for Venezuela to go around its cash problem and use the El Petro instead of physical money to tackle the economic crisis. Although the Venezuelan parliament slammed the plan, claiming that it violates the constitution and attempts to mortgage part of the country’s oil reserves, Maduro forged ahead, saying in January that the first sale of El Petros will take place on February 20. The US has already warned that “the petro digital currency would appear to be an extension of credit to the Venezuelan government.”   What do you think of Maduro’s idea? Share your opinion in the comments section below.  

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