When Venezuela announced its national cryptocurrency, the Petro, the whole crypto community was watching with eyes wide open how it would end. Certainly, the excitement and nervousness were not out of place. As a matter of fact, the whole world was observing how President Maduro and his Venezuelan underlings would use Petro to wriggle from suffocating US sanctions. In addition to this, many anticipated how successful resource-backed assets will work out.
The Suspicions and Fear Never Left
In the first place, while many watched the socialist altcoin with excitement, others were downright skeptical of Petro, suspecting it as a political scam. Many were fearful that it was a fraudulent attempt by the socialist government to save a sinking nation. Well, for those set of pessimists who never saw any good coming out of the Petro, they could be right!
In light of this, a new report from Reuters largely threatens the credibility of the Venezuelan Petro. This unsettling report seriously questions the viability of the Petro, a government coin backed by the voluminous oil reserves of Venezuela. This report, which Reuters extracted during four crucial months of investigations, was unable to find investors, users, and accessible resources that back up the controversial oil-backed coin.
Correspondingly, the report says Venezuela’s Government is struggling to clearly and reasonably explain the development process for the Petro. Therefore, it is seen why the government desperately promotes the national token.
The Emerging Report of False Petro Success Stories
The Reuters’ report comes as a stark contradiction to the success stories that the Venezuelan government is pushing. Government authorities in Venezuela boasted loudly that the Petro has fetched the nation a mouth-watering $3.3B USD. The authorities further applauded the success of the coin in carrying out imports. However, a cabinet minister disclosed that the it isn’t yet buoyant for prime time use at this nascent stage. Hugbel Roa, who runs the Venezuelan Blockchain Observatory, revealed that the Petro was still in its development phase. Thus, this early model is not ready to perform.
Further Controversies Pile In
The government of Venezuela claims that its famed oil reserves contain a humongous 5.3 billion barrels of oil. These reserves are situated at a 380-square-kilometer bloc termed the Ayacucho I. However, reports on the ground say that the enviable oil reserves were more fictitious than real. Reporters visiting Venezuela, instead of the glowing oil reserves, raised concerns about broken oil pumps, embarrassing power outages, and starkly displayed hungry children roaming the streets.
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