Venezuela's digital coin makes debut

Officials say the so-called petro is backed by

Venezuela's crude oil reserves, the largest in the world, though it hasn't released any details on how this will be guaranteed.
"My advice would be to tread very carefully with this—especially considering the track record of the Venezuelan government," said Federico Bond, co-founder of Signatura, a digital startup based in Argentina.
Socialist President Nicolas Maduro late last year announced he was creating the digital currency to outmaneuver U.S. sanctions preventing cash-strapped Venezuela from issuing new debt. In a white paper, the government said it will release 100 million digital petro coins during the first year, with the initial 38.4 million expected to go on sale Tuesday at a value of $60 per token.
If all the initial coins offered for sale are grabbed by investors, it could potentially bring several billion dollars into a government mired by cash shortfalls and skyrocketing inflation. The government has promised that Venezuelans will be able to use the coins to pay taxes and public services. But with the Venezuelan minimum wage hovering around $3 a month, it's unlikely citizens will buy in large amounts.


Read more at: https://phys.org/news/2018-02-venezuela-digital-coin-debut.html#jCp