Venezuela will soon sell oil from reserves of a state-run oil and gas company for its national oil-pegged cryptocurrency, the Petro (PTR).

Venezuelan President Nicolas Maduro has signed a decree to sell four.5 meg barrels of oil from the certified xxx 1000000-butt reserve maintained by Petroleum of Venezuela (PDVSA), the country-owned visitor officially announced on Jan. fourteen.

According to PDVSA, Maduro announced the news in a speech earlier the Constituent National Assembly — an assembly elected in 2017 to draft a new constitution for Venezuela.

Oil sales to exist an exploration mechanism

Once the initial sale of 4.5 1000000 barrels is completed, the firm will sell 50,000 barrels per day, denominated in Petros, as an "exploration machinery" for the oil-backed stablecoin. Maduro said that the trial will exist vital for the consolidation of Petro, stating:

"Nosotros are preparing for the second phase that will let more than efficient employ of cryptocurrency."

Moreover, Maduro also decreed that all plane fuel used for covering international routes should exist sold for Petros. The president reportedly said that this scheme will permit Venezuela to "open roads to the new economy" and build a world of "peace and integration of peoples, their happiness and comeback."

Maduro said that the Petro will be an important tool for the country'south fight against the mafia.  Maibort Petit, a Venezuelan writer and journalist, quoted Maduro:

"A lot of people don't want to switch to the Petro considering they accept their business in dollars. Mafia and other thieves don't like the cryptocurrency considering it cuts off their hands."

Some commentators have taken to Twitter to oppose Maduro'south program, claiming that the Petro is a "robbery disguised under 4.5 million barrels." Some argued that selling oil from the state'south national reserves violates the constitution of Venezuela.

Every bit reported by Cointelegraph in November 2019, Maduro purportedly cut the Petro'due south backing from v billion barrels of oil to 30 million. The sharp decline was allegedly a result of United States sanctions on PDVSA.

Launched in February 2018, the Petro became the earth's get-go national oil-broiled cryptocurrency. In late 2019, Maduro ordered that Venezuelan retirees and pensioners should go their Christmas bonus in the Petro. Despite Maduro ordering Banco de Venezuela to showtime accepting PTR in July 2019, the Petro is purportedly still not used in the country.