Venezuela has decided to discontinue the "petro" cryptocurrency.

 

Venezuela is discontinuing the 'petro' cryptocurrency, introduced by President Nicolas Maduro six years ago to circumvent U.S. sanctions. Despite its launch with grandeur in February 2018, backed by Venezuela's substantial petrol reserves, the petro failed to gain traction and became entangled in a corruption scandal. All crypto wallets on the Patna Platform, the sole website facilitating petro trading, will be closed on Monday, as indicated by a message on the platform's site. Any remaining petros are being converted into bolivars, the struggling local currency.

Maduro had initially promised that the petro would open avenues for new international financing amid Washington's economic sanctions on Caracas. However, citizens found it challenging to comprehend its use, and it earned the label of a 'scam' from some risk rating agencies. In 2020, Maduro attempted to revive the cryptocurrency by mandating its use for airline fuel payments and certain state services, but its widespread adoption remained elusive.

The demise of the petro was sealed by a corruption scandal in 2023, exposing irregularities in the management of funds from oil operations involving crypto assets. This scandal resulted in the resignation of the once-powerful petroleum minister Tareck El Aissami and the detention of numerous officials, including top management of the Sunacrip crypto regulator. The government also cracked down on bitcoin mining operations in a country where cryptocurrencies served as a popular safeguard against hyperinflation and the devaluation of the Bolivar.

The private platform CryptoLand Venezuela officially declared the petro (PTR) dead on social media last week. A 2022 survey presented at the United Nations Conference on Trade and Development revealed that 10.3 percent of Venezuelans own cryptocurrencies, surpassing the ownership rates in the United States (8.3 percent) and Britain (5 percent).