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Venezuela Parliament Calls President’s $5.9 bln Petro Cryptocurrency ‘New Fraud’

Petro, the oil-backed cryptocurrency planned by Venezuela’s president, is “a new act of fraud”, according to a member of the country’s parliament.

Venezuela’s parliament has denounced the emission of President Nicolas Maduro’s Petro cryptocurrency, calling it “totally null and void.”

The stricken country’s planned national digital currency Petro, so called because it would be notionally tied to its oil reserves, had a planned initial value of $5.9 bln, after Maduro announced 100 million units in a TV address last week:

“I have ordered the emission of 100 million petros with the legal sustenance of Venezuela’s certified and legalized oil wealth.”

A barrel of Venezuela’s oil previously closed at just over $59.

Countering the plans in parliament however, deputy Jorge Millan ridiculed Petro as a “new act of fraud.” He told politicians during a debate,

“We find ourselves before a new kind of fraud, disguised as a solution the (financial) crisis.

This incompetent government wants to compensate for lack of oil production with these virtual barrels.”

Maduro has “routinely” ignored protests of legislative entities, Reuters notes, and the latest condemnation of Petro’s legality may not be the nail in the coffin for the scheme. Reuters also quoted Millan as saying:

“This is not a cryptocurrency, this is a forward sale of Venezuelan oil. It is tailor-made for corruption.”

Outside commentators have placed doubt on the overall appeal of Petro should it launch as planned, due to the tenuous political situation with which Venezuela continues to struggle.

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