Venezuela’s Petro crypto currency made an interesting start. Despite opposing views openly coming from various countries, the Venezuelan government wants to improve the widespread use of this currency. In this context, the Indian government wants to buy crude oil from Venezuela with a 30% discount, and this discount will only take place if India uses Petro for payment.
Can Petro succeed?
It is clear that Venezuela’s crypto currency is a controversial issue. This new form of currency faces a resistance from the government and other countries. Especially the United States is not very happy about this project given the sanctions applied to this country months ago. Together with Petro, Venezuela could effectively overcome these sanctions, which could create complex problems in the future.
Despite this opposition, the Venezuelan authorities still want to improve the overall use of Petro.India was given an important first step, offering a 30% discount on crude oil purchases. This discount can only be obtained if India pays crude oil using Petro crypto currency. The news comes at an interesting time for this new crypto currency. Venezuelan blockchain experts recently visited the country to sign an agreement with Coinsecure .
According to the agreement Coinsecure will start selling Petro in India. This will allow users to trade against both Bitcoin and the Indian Rupee in this new crypto currency. In this context, Venezuela normally wants to further develop its national cryptographic currency. Although it is not yet accepted by the Indian government, it seems very interesting to offer such a crude oil deal.
Potential Results of the Agreement
Despite Petro’s initial interest, the crypto currency did not make much impact. There is no official agreement to promote the use of this national cryptographic currency. A partnership with India will surely bring Petro up to a whole new level. But there are many concerns about sanctions and other reflections to be included in this “unapproved” money format.
For now there is no sign that the Indian government will accept this offer. According to previous negotiations between the two sides, this situation may change in a short time. Petro is still not launched since it will happen after the new presidential elections. These events are scheduled to take place on May 20, 2018. Venezuela’s deputy minister for hydrocarbons Angel Gonzalezexpects great interest from countries like India.
Trump’s decision to ban
With President Trump’s decision to ban this cryptographic currency at present, it remains unclear what will happen in the future. Venezuela wants to make this money form the official currency between this year and 2020. It may be possible to achieve this ambitious goal. Petro will continue to be a controversial topic in the future. Petro is the first crypto currency linked to the world’s national oil reserves. At the same time, however, Petro is an “illegal” way of bypassing current sanctions.