Venezuelan President Nicolás Maduro has formally invited all member nations of the Organization of the Petroleum Exporting Countries (OPEC) to jointly develop a platform for trading oil-backed cryptocurrencies. The initiative aims to innovate global energy payment systems and strengthen cooperation among oil-producing countries in the digital currency space.
Details of the OPEC Joint Proposal
During a meeting with OPEC Secretary General Mohammed Barkindo on Tuesday, Maduro explicitly proposed that all OPEC members—including Algeria, Angola, Ecuador, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates, and Venezuela—establish a common mechanism for an oil-backed cryptocurrency. He also extended the invitation to non-OPEC countries. “I will officially propose to the OPEC and non-OPEC countries that we adopt a joint cryptocurrency mechanism backed by oil,” Maduro announced.
Venezuela recently published the whitepaper for its own oil-backed cryptocurrency, the petro. A private pre-sale is scheduled for February 20, 2018, followed by an initial coin offering (ICO) in March. Maduro confirmed that “5 billion barrels of oil support the petro” and added, “we will also support our cryptocurrency with precious minerals from our land.” He stated, “I have explained to Mohammed Barkindo the goodness of the petro. The cryptocurrency is the world of the future. I am very excited as well as the people of Venezuela.”
Petro’s Promises and Use Cases
According to the petro’s whitepaper, “The Bolivarian Republic of Venezuela guarantees that it will accept petros as a form of payment of national taxes, fees, contributions and public services.” The Venezuelan government is committed to promoting the use of petro domestically and internationally. Moreover, PDVSA (Petróleos de Venezuela S.A.) and other public and joint ventures will be early adopters. On Tuesday, the Superintendency of Cryptocurrencies announced that “PDVSA will use the petro in its business relations.”
The regulator also provided details on the previously announced “Petro Container,” describing them as “for the massification of mining farms in high schools, universities, university villages and popular sectors.” This indicates Venezuela’s attempt to spread crypto mining through educational and social channels to expand the petro ecosystem.
Maduro’s invitation marks a potential unprecedented collaboration among OPEC countries in the digital currency space. If other members respond positively, a multinational oil-backed cryptocurrency platform could emerge, impacting global energy trade and the crypto market. However, the petro faces challenges including technology, regulation, and international sanctions.