Venezuelan President Nicolas Maduro has announced that he intends to allocate 30 million barrels of crude oil for material support of the state cryptocurrency Petro.
He reported on national television thatThe necessary oil reserves are in storage tanks and are ready for immediate commercialization. Although Maduro did not specify how the sale and transfer of stocks would be organized to support Petro.
Earlier, Reuters reported that initially the government planned to reserve 5 billion barrels of oil as collateral. However, US economic sanctions against the state-owned oil company PDVSA have led to reduced production volumes and a revised support program.
Government-promoted cryptocurrencyPetro is not traded on any foreign exchange, so material support is a way to increase domestic oil use and curb hyperinflation.