It’s no secret that Venezuela has been struggling to restructure its debt, estimated to be over $160 billion by some economists, with President Maduro now saying that his government became the victim of an economic war led by opposition politicians with the help of the now U.S President Donald Trump’s administration.
The US Treasury Department has warned United States citizens as well as companies that purchasing “el petro” would mean violating sanctions, with Sec. of State Rex Tillerson stating that Washington was now contemplating sanctions on Venezuela’s oil sector in order to mount more pressure on the country’s authorities and force them to in his words “return to a constitutional process.”
It is now expected that a total of one-hundred million petros will go on sale with an initial value set at sixty dollars a piece, using the price of a barrel of Venezuelan crude oil as of mid-January as a barometer.
Venezuela’s economy has been in a serious economic crisis and as it struggles with hyperinflation and all-time low value of the bolivar currency, the President is desperate in his hopes on the newly cryptocurrency; assuming that it will allow the country to bypass US sanctions currently preventing Venezuela from issuing new debt.