The cryptocurrency Petro was launched by the government of Venezuela in February 2018. A number of issues is reviewed at a Russian-Venezuelan high-level intergovernmental meeting which takes place in Caracas. Among the problems to discuss are bilateral cooperation in the military area, railroad projects in Venezuela, and food production.The Bolivarian Government of Venezuela is also adding the cryptocurrency Petro to the discourse.
The conference objects at strengthening the the 2 countries` union and the partnership conception of major companies, such as the Petromonagas project between Russian energy company Rosneft and Petroleos de Venezuela S.A. (PDVSA). Petro is reckoned as a possibility to consolidate the strategic alliance and the trade relations between Venezuela and Russia.
According to the information published in Time magazine, there is an evidence to suppose that the Venezuelan oil-backed cryptocurrency was helped into creation by Russian businessmen, officials and bankers. The hypothesis is that Russia aims to use the currency as an experiment in bypassing US sanctions.
Despite Petro is a national cryptocurrency, there is constantly growing request for Bitcoin in Venezuela. The country is suffered by huge inflation, which makes the Venezuelan people to look for safe ways of keeping value. Another kind of cryptocurrency is also planned to be launched in Venezuela. It is supposed to be backed by gold and other precious metals. Like with Petro, cryptocurrency enthusiasts argue that a centralized government creating a decentralized currency breaks the purpose of the technology completely.
The US officials have admonished investors that Petro comes to be an extension of credit to the Venezuelan government. President Donald Trump let the law prohibiting US citizens from involving in transactions with Petro as part of a current campaign to pressure the Venezuelan government.