Venezuela’s national cryptocurrency continues to remain marred by controversy and conflicting information. Petro, the cryptocurrency backed officially by Venezuela’s oil reserves, is off to a rather rocky start. Local residents of Atapirire, the region where the nations oil reserves are located have confirmed that the government has not yet made any efforts to collect its 5 billion barrels of oil to give this cryptocurrency any value.

Is There Value to the Petro?

On the surface, Venezuela’s national cryptocurrency is backed by the South American nation’s vast oil reserves. However, according to a report on Reuters, that situation is very different from what President Maduro has tried to potray recently.

Petro’s oil reserves were supposed to be hauled from the town of Atapiririre, an area located within the heart of the Savannah region. The land is replete with natural resources and has the capacity to produce 5 billion barrels of petroleum annually. Because of these reserves, issuing the cryptocurrency had become a possibility. However, it now appears as though no effort has been undertaken to pump these oil fields.

More on the Matter

There are still nearly no use cases for this so-called national cryptocurrency. Because of its ties to the oil reserves, one would expect this alt-coin to make its mark on Atapirire at some point. So far, nothing of this sort has happened, thereby raising a lot of questions as to how this venture will evolve over the coming months. 

Changing the narrative surrounding the Petro will not be easy. The project has been scrutinized from the moment it was announced. Moreover, there are genuine concerns whether this project has any real value or not. 

Final Thoughts

Any government looking to issue its own cryptocurrency needs to learn from Venezuela’s efforts. The lack of transparency, guidelines, and usability make the Petro look more unappealing by the day. It seems unlikely any real changes are to be expected in the short-term. Moreover, the website of the Superintendence of Cryptoassets, which oversees the Petro, remains offline for the time being.

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