According to a Reuters Special Report, Petro Cryptocurrency May Be a Scam
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According to a Reuters Special Report, Petro Cryptocurrency May Be a Scam

The Venezuelan government launched its oil-backed cryptocurrency 7 months ago. However, the government has not given much proof that the Petro cryptocurrency actually exists. According to a new special Reuters report, the Petro cryptocurrency and the oil reserves that back it are not anywhere to be found.

Reuters sent a team of reporters to Atapirire which is an isolated Savanna in Venezuela to search for evidence about the booming oil industry in the nation. According to the government headed by Nicolas Maduro, that area is brimming with 5 billion barrels of petroleum for the purpose of backing up the cryptocurrency that was launched earlier in February this year.

Igdalia Diaz, a local of the area was quoted by Reuters saying,

There is no sign of that petro here.

Reuters spoke to a number of experts on cryptocurrency and oil-field valuations over a period of four months and concluded that there was no evidence that the petro trade existed. The small number of people that Reuters found involved in the petro trade gave conflicting viewpoints with many stating that they were scammed. A person stated that he received the tokens, however, the United States sanctions imposed on Venezuela affected Petro’s debut negatively.

Reuters reporters also visited Venezuela’s Finance Ministry where the  Superintendence of Crypto Assets is reportedly housed and stated that it ‘doesn’t have a physical presence here yet’. However, reporters were unable to get in contact with anyone involved with the cryptocurrency, including those from the Industry Ministry.

Some of the social media reaction to this report is as follows.

@gocryto tweeted,

Scam coin, only to be used inside Venezuela and obligating the population to receive it as payment because the local currency has disappeared, inflation at almost 1m % prices change by the hour, still petro nowhere to be found……

@octoleaks tweeted,

Biggest scam in Venezuelan history is making millions Venezuelans learn about #crypto

Gov suicide?

@el_dani182 tweeted seeing a positive sign in this revelation,

There’s a positive side about the #Petro scam:

1. #Venezuela is in the spotlight because of it and eventually the crypto community all over the world will see the results and the government won’t be able to cover up.

2. Every person in the country knows something about #crypto

@clintonyorke tweeted,

They should buy bitcoin & circumnavigate any government crypto coin. Petro will just devalue the same as the Bolivar over time. Bitcoin has hit its bottom at $6k The Venezuelan government could have purchased shares in Apple or Amazon & grown the economy but they choose to be bent.

@GlobalBitcoiner tweeted,

The Petro is a shame for Cryptocurrency as is Bolivars for Fiat. Only Bitcoin backed Digital Currencies will have a Short future till Bitcoin scaling is Solved.

Furthermore, the Venezuelan government has given mixed reviews about the cryptocurrency. In March, the government claimed that it had raised $5 million in terms of petro sales. However, when talking to Reuters, cabinet minister Hugbel Roa said that the technology underlying Petro is still being developed and added,

Nobody has been able to make use of the petro … nor have any resource s been received.

The Petro also doesn’t exist on any cryptocurrency exchange and is also not accepted by any Venezuelan retailer. When it was launched, one petro was pegged to one barrel of domestic oil at $60. However, with the lack of an exchange listing, it is difficult to link prices to exchange rates and determine the coin’s value as well.

Read Also:Venezuela Becomes The Second Largest Market For Dash

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Pallavi Janiani

Pallavi Janiani

Content Writer
I am studying Business and psychology at the university of Minnesota. Apart from learning about how the economy and the human mind works, I spend my time dancing with my bollywood fusion team, reading, writing, traveling, usually with a cup of coffee in my hand.