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Venezuela announced the details of the national cryptocurrency Petro, with 5 billion barrels of crude oil backing it

The Venezuelan government has released a decree outlining the operational details of Petro, the country's digital currency. The decree details the government's new monetary plan, including issuance, mining and trading. In addition, Petro will receive 5 billion barrels of crude oil as a support.
5 billion barrels of crude oil and mining plans

Venezuelan President Nicolas Maduro has allocated 5.3 billion barrels of crude oil (worth 26.7 billion U.S. dollars) to support the nation's cryptocurrency. Maduro first announced Petro in early December 2017.

In weekly radio and television broadcasts, he presented a "document formally approving the Ayacucho field at Orinoco Belt 1 in support of Petro's cryptocurrency." Maduro confirmed that "every Petro has a barrel of oil as a support."

"We're going to set up a dedicated team of cryptocurrencies experts so they can participate in the mining activities in all of our states and cities."
In addition, the president "promised to allocate Arco Minero gold reserves and diamond reserves from the Orinoco Belt to Petro.

As previously reported, Venezuela's cryptocurrency regulator and national blockchain watchdog will oversee the creation and operation of Petro.

Distribution and trading plans

The Maduro government has issued a communiqué outlining a 13-part statutory law; nearly half of them are about Petro's operational details.

Part IV of the decree describes the assets that underpin this new partnership, stating that Petro "is about Venezuelan oil within the Opec basket and other commodities such as gold, diamonds, iron ore and natural gas "In addition, every Petro" is physically supported and has a one barrel contract of oil purchase and sale from the crude oil basket in Venezuela or any country-determined commodity. "

The fifth part of the decree states the nature of the wallet holding Petro and the convertibility of this cryptocurrency, the document states:

"Petro holders can change the market value of this cryptocurrency asset in exchange for the equivalent of another cryptocurrency or exchange Bolivar (the country's currency) at the market exchange rate published by the National Cryptocurrency Exchange Center ... Each Petro holder owns a virtual wallet, which is held by the holder. "
The communique also provides some Petro release details and suggests an ICO. "The initial placing of Petro will be conducted by auction or direct transfer."

In addition, the government explained in Part 9 of the Gazette, "Petro's trusteeship will be decentralized once the Encrypted Assets and Related Venezuelan Activities Regulators complete the first auction and distribute the Encumbered Assets to investors."

Regarding the start date, Jorge Rodríguez, the country's communications and information minister, recently said that "the initial release of Petro cryptocurrencies will be announced in a matter of days." Then, in a year-end speech to the National Radio and Television last night, Maduro revealed :

"In January 2018, I will announce all the conditions under which Petro will be operational."