The Crypto Roundup: 15 January 2024 | CryptoCompare.com

Five years after launching its Petro cryptocurrency, Venezuela has reportedly announced that it’s phasing it out. The announcement was made via its Patria Platform, the only website where Petro was tradeable.

The cryptocurrency was launched by President Nicolás Maduro back in February 2018 in a bid to bolster Venezuela’s national currency, the bolívar, amidst an intense economic crisis worsened by U.S. sanctions.

The Petro (PTR) was initially backed by the country’s vast oil reserves, but faced controversy since inception as Venezuela’s opposition-led congress quickly declared it illegal to use oil reserves as collateral. Adding to its challenges, in 2019, the U.S. sanctioned a Russian bank involved in financing the Petro.

The Venezuelan government, over time, tried to integrate the Petro into various services, including making it necessary for passport applications and to fund a social housing initiative.

Petro is now being phased out after a corruption scandal involving the misuse of crypto assets in oil operations, leading to the resignation of Petroleum Minister Tareck El Aissami and a crackdown on Bitcoin mining operations. The remaining Petros are set to be converted to bolivars.

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• Source: https://www.cryptocompare.com/email-updates/daily/2024/jan/15/