Venezuela Plans to Sell Oil Products for State Backed Cryptocurrency Petro Next Year

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Venezuela is set to make the country’s controversial petro token the legal tender for all oil transactions.And according to the country’s president, this will take effect from next year.

In a report contained in state-run media TeleSUR, President Maduro remarked that the move was aimed at limiting the dominance of the dollar in the industry as well as diversifying the global market.

President Maduro was reportedly quoted to that have said:

“In 2019, we have a schedule for [oil] to be sold in Petros and in this way continue to free us from a currency that the elite of Washington uses.”

Following the U.S led sanctions that have had a huge impact on the crippling economy of the country,the President of Venezuela was reported to have developed a six-year financial plan which involves using the petro token to limit the effect of sanctions from the west. The move to begin using the state-backed cryptocurrency for all oil transaction was announced shortly after a meeting between the president of Venezuela, Maduro and Russia’s president Vladimir Putin in Moscow.

President Maduro while defending the move stated that Russia is already buying oil and other products in the Yuan,the Chinese currency. To this end, he remarked that the country would follow suit by selling all its oil products in Petros.

Speaking last month,the  country’s petroleum minister and the president of the PDVSA, a state-backed oil company stated that the country is planning to introduce the petro token to the Organization of the Petroleum Exporting Countries (OPEC) in 2019, as the “main digital currency backed by oil.”

It would be recalled that petro token was launched for pre sale in February in a bid to introduce the token into the economy of the country. Nevertheless,that move has been met with opposition from the country’s Congress which stated that the move is illegal as they termed it illegal borrowing from the country’s oil reserves.

Notably, in October, Venezuela started selling petro tokens to citizens, stating that the token must be used by those who wanted to obtain or renew their passports.