Venezuela's President Nicolas Maduro said Dec. 3 that his government would launch a cryptocurrency to overcome U.S.-led financial sanctions and prevent the collapse of the economy, Reuters reported.
"Venezuela will create a cryptocurrency... the 'petro,' to advance in issues of monetary sovereignty, to make financial transactions and overcome the financial blockade," Maduro said during his weekly broadcast.
The petro will be backed by Venezuelan reserves of gold, oil, gas and diamond, he said, but did not provide details.
Opposition leaders doubted the plan, saying it needed congressional approval, Reuters reported. Cryptocurrencies are not backed by governments or central banks, but bitcoin has gained a following among Venezuelans seeking to bypass the sanctions to obtain dollars or make internet purchases.
In contrast, the bolivar, Venezuela's currency, is in free fall. Currency controls and excessive money printing led to a 57% depreciation of the bolivar against the dollar in November on the black market, said Reuters.
