The Real Value Of Venezuela’s Oil-Backed Crypto Petro Still Unknown

The value of the controversial oil-backed cryptocurrency of Venezuela Petro still remains unknown besides the massive government encouragements to use the currency and to replace the national Bolivar. We try to find out what that is the case in our latest altcoin news.

The Petro is meant to combat the international sanctions but since it is pegged to the sovereign Bolivar, one petro should be backed by one barrel of oil. Venezuela’s Central Bank says that the value of Petro as a unit of account is about 9,000 sovereign bolivars and their website exchange rates converter confirms that one US dollar is equal to 638 sovereign bolivars.

This means that one barrel= one petro is about $14.10. The exchange rates for the Banco de Venezuela are rather odd as local sources show that outside of Venezuela the oil prices were extremely volatile after the crude oil declined from $77 to $45.

What is most important to know is that the exchange rates of the sovereign bolivar against the US dollar aren’t exactly clear. Venezuela says that the rates go at 638:1 but other indexes show that it is at least 900:1 since a simple cup of coffee in the country costs 450 bolivars which is equal to $0.50.

The value of the oil-backed cryptocurrency isn’t the only thing that is suspicious about it. There are plenty of reports that show that the currency is not supported by the bolivar nor by the oil and that the whitepaper of Petro is the exact copy of the altcoin Dash.

Despite the controversies, the government in Venezuela is pushing for Petro’s adoption after President Nicolas Madura ordered the banks to accept it and even has plans to provide pensions with it.