Venezuela Blasts ‘False’ White Paper for Oil-Backed Cryptocurrency

Maduro
19 January 2018

Venezuela’s government is pushing back against what it calls “false information” in connection with a purported white paper tied to its planned oil-backed cryptocurrency.

While the South American nation did not confirm exactly what this false information constitutes, the superintendent of Venezuelan Cryptoassets and Related Activities – recently created to oversee the work, which was first announced last month – told Reuters that the government was rejecting a white paper which purported to explain how the petro worked.

The white paper for the petro has not been released yet, he said, but Venezuelan President Nicolas Maduro will do so “soon.”

A Reddit post from roughly two weeks ago claimed to include a link to the petro’s white paper, and the document itself – unconfirmed by the Venezuelan government as of yet – appears to be hosted on the government’s official website. Whether this document is an early version of the expected official release remains to be seen.

The controversial “petro token” was announced last month, with the stated goal of bypassing financial sanctions amidst a years-long economic decline. Venezuela’s current fiat currency, the bolivar, has been subject to intense inflation, with the government recently issuing a 100,000 unit note.

That said, the proposal has drawn criticism from some quarters of Venezuela’s government, namely the legislature, which is controlled by political forces opposed to Maduro. The concept has been called “illegal” by the nation’s Congress, for example.

Venezuelan flag image via Shutterstock