Reports have surfaced that the Venezuelan government will be shutting down Petro (PTR), its state-issued cryptocurrency backed by oil. This controversial crypto has not seen widespread adoption among citizens in the country and is set to be converted to the national fiat currency, bolivar.
The shutdown of Petro comes after almost six years since its official launch in 2018. At the time, Venezuelan President Nicolás Maduro touted the crypto as a solution to bypass harsh US sanctions and revive the struggling economy.
Despite these ambitious goals, Petro faced numerous setbacks and criticism, including being labeled as unconstitutional by legislators before its launch. Despite this, Maduro’s administration persisted and even announced that passport fees would be paid in PTR.
In 2020, the President continued to emphasize the importance of Petro in the country’s economic recovery. However, it failed to gain traction among citizens, who instead turned to other cryptocurrencies like Bitcoin.
Even opposition leader Leopoldo López reportedly endorsed crypto, stating that it helped Venezuelans preserve their savings from the constant devaluation of the bolivar.
As the government shuts down Petro, it remains to be seen how this decision will impact the adoption and use of other cryptocurrencies in Venezuela.
