FX.co ★ Venezuela to launch its cryptocurrency

Venezuelan President Nicolas Maduro plans to introduce the national cryptocurrency to combat US sanctions. The new cryptocurrency will be called the ‘petro’ and will be backed by the country’s oil reserves.

The petro would help Venezuela “advance in issues of monetary sovereignty, to make financial transactions and overcome the financial blockade,” Maduro said.

Opposition leaders criticized the president’s proposal. They said the launch would require congressional approval. Some even said the idea would come to nothing amid the turmoil in the country.

The announcement bewildered some followers of cryptocurrencies, which are usually not backed by governments or central banks. In recent years, Venezuela has witnessed the increased demand for bitcoin from tech-savvy Venezuelans who want to bypass controls and get dollars or make purchases online.