Petro, Venezuela’s Oil Backed Crypto Growing Thanks to Russian Bank

Reports Indicate

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Petro which is Venezuela oil backed crypto has been surviving due to the support of the Russian bank, Evrofinance Mosnarbank. This is regarded as the only finance based organization which has been able to defy the US sanctions which are against the South American nation.

In accordance with the associated press briefing, early are the Petro investors who made registrations with the government and downloaded the wallet of the crypto were then invited for purchase at $1,190 at a minimum using the government account in Evrofinance.

Reports claim that Russia was at the forefront in helping Venezuela launch and oil-backed crypto but a certain Russia official denied the claims. However, Evrofinance had two largest shareholders who happen to be two Russian state-controlled banks – these are sanctioned under Nicolas Maduro and Russia’s Annexation of Crimea. Therefore the government is said to have purchased around 49% stake in 2011.

Just as the involvement of Russia was under discussion, Russia’s based Association of Cryptocurrency and Blockchain was involved in awarding the Venezuelan government the Satoshi Nakamoto prize. Therefore, the involvement of Russian may be tied and linked to the relations it has in the West.

According to Claiborne W. Porter, the country has slowly been gaining the Pariah status with the EU. Porter said;

“Like kids on the playground, Venezuela and Russia think they are fighting a common bully in U.S. sanctions, so they’re going to try and form a united front.”

From History, Russia has been helping Venezuela with debt relief worth millions and has also been a major investor in the oils industry in the nation.

On the other hand, president trump banned the residents from the purchase of Petro and according to Venezuela, this move led to an increase in the investors.

Petro’s Development

We are still not sure how many Petro’s the Venezuelan government has been involved in selling. However, Maduro set the crypto pre-sale raked in $5 billion. The numbers are however not adding up. The various foreigners say that they are not interested in the crypto and also the Brookings Institute said that this crypto undermines the legitimate crypto legitimacy.

Various crypto exchanges are also said to have stayed away from it such as Bitfinex in fear of sanctions violations. In accordance to experts, only criminals may have interest in it. Alejandro Machado stated;

“An overwhelming majority of ICOs don’t deliver on what they promise because their promoters are outright scammers or fall short on technical expertise. In the case of the Venezuelan government, both reasons apply.”

To Russian s who had been involved in a partnership with Maduro to expand the crypto globally also stayed away following the US ban. Maduro however, is set to expand it and has requested the state-owned organizations to start accepting it and also setting up 16 local exchanges.

The Venezuelan government also reported that they are working with another cryptocurrency, Petro Gold. Yuri Pripachkin, Russian Blockchain group president said that they are not working with Petro but keeping an eye on it.

He said while dismissing the fact that Petro could be used to fund criminals;

“That’s a fairy tale. The most popular currency for terrorists and criminals the world over is the U.S. dollar, not crypto, and nobody is suggesting we ban dollars. This is just an attempt to stop crypto from expanding.”

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