What Is Petro Gold?
Petro Gold is a cryptocurrency created by the government of Venezuela. This cryptocurrency was launched in February 2018.
Based on the information taken from the cryptocurrency’s website, the country’s cryptocurrencies use blockchain technology and are regulated by Venezuela’s cryptocurrency watchdog.
What’s interesting, Petro Gold was the second cryptocurrency announced by the government of Venezuela. What’s important, after the first state-issued cryptocurrency, Petro, appeared to be a farce, the President of Venezuela, Nicola Maduro, announced a second token which Nicola Maduro called Petro Gold.
The country’s digital currencies can be used through crypto wallets, digital wallets, payment systems, as well as through exchanges.
However, users must first create a wallet through PetroApp before they can begin. The cryptocurrency can be used for payment to participating businesses, or it can be exchanged to purchase other cryptocurrencies and fiat money. It is noteworthy that platforms that support transactions for the petro are PetroApp, Vex, Patria, and Banco de Venezuela.
Even though Petro (the first cryptocurrency) was launched in November 2017, it doesn’t appear to be in wide circulation in Venezuela, even though the country’s leader promised it would be the cornerstone of Venezuela’s economic recovery.
Unfortunately, the country is still in the throes of an extreme economic crisis created by a combination of factors.
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Petro Gold and Venezuela
The country needs hard currency, especially dollars, in order to pay creditors. Requiring dollars as well as other non-bolivar currencies in exchange for Petro Gold is a sign that investors will face even more risk than they would if they bought other cryptocurrencies.
Interestingly, the constant drive to find better returns may result in investors still taking a chance. Surprisingly, the Petro (again, not Petro Gold) pre-sale reportedly included investors from countries in the Middle East, Europe, and the United States.
People should remember that the U.S. Treasury Department warned that holding Petro as well as Petro Gold violates sanctions.
Venezuela and its cryptocurrency
The government of Venezuela is trying to circumvent economic sanctions placed on it by the U.S. and other developed countries. As stated above, the U.S. Treasury Department is ready to impose sanctions on individuals buying Petro or Petro Gold.
In 2019, the country’s leader launched a campaign to speed up the country’s adoption of Petro.
As a reminder, Maduro’s order came on the heels of an initiative to give one million cryptocurrency wallets with a small amount of the cryptocurrency in them to young Venezuelans, in addition to education regarding the cryptocurrency.
In the last month of 2019, Venezuela paid government workers and pensioners at least partly in Petros.
The government of Venezuela signed a new crypto tax agreement in 2020, allowing it to start collecting taxes and fees in Petro.