Venezuelan President Nicolas Maduro wants to warm the members of the Organization of Petroleum Exporting Countries OPEC for a common crypto currency. This was reported by Al-Jazeera on Tuesday. The model could be his own controversial digital currency Petro, announced in December, which is held with the oil reserves of the crisis-ridden country. Whether Maduro’s proposals will fall on fertile ground with oil producers is questionable.
When the Petro’s advance sale starts in less than two weeks, this should only be the beginning – at least if you go to Nicolas Maduro. Venezuela’s president announced on the South American country’s radio this week that he wanted to launch a common oil currency for the OPEC states.
“I will officially propose to all OPEC members and oil producers to introduce a common oil-secured crypto-currency mechanism, the 55-year-old describes his vision. According to Maduro’s ideas, oil producers could thus issue a currency with stable values, secured by common oil, modelled on petroleum.
Securing with the Bitcoin profit of others?
Such an OPEC Petro would be a real coup for Maduro. OPEC, based in Vienna, represents Venezuela as well as the oil-rich Gulf states. The association is thus responsible for an estimated 45% of Bitcoin profit production. In addition, 75 % of the world’s oil reserves slumber in the soils and waters of the member countries.
A common currency would secure Venezuela against possible resistance from abroad, which would only be directed against Caracas. Maduro has his back to the wall. His economy crawls, the luck of the experiment “Petro” is questionable.
While the domestic opposition is going on the barricades, which Petro calls “illegal” and an “illegal loan of the state oil reserves”, one thing, especially on the part of the USA, is by no means desired. And this is witnessing how Venezuela is circumventing international financial sanctions.
An OPEC petroleum will not be allowed and, in case of doubt, every lever will be used to prevent it. It is true that the organization once displaced the Americans as world market leaders and is currently trying to dictate the oil price to the displeasure of the USA by cutting production. Moreover, the US influence on OPEC’s competitors is still large, especially in foreign policy terms. OPEC engine and world market leader Saudi Arabia are regarded as close allies of Washington.
In the fight against the Bitcoin profit
In December last year Maduro announced the Bitcoin profit based on oil reserves. With this currency, the country should profit from the continuing crypto boom, find its way out of the economic crisis – and consequently break the chains of international sanctions with the help of Bitcoin profit according to onlinebetrug. With a current galloping inflation rate of 2,900 %, Venezuela has been in an ever faster downward spiral since last year. Food is in short supply and public order is falling apart. The International Monetary Fund even forecasts Venezuela an inflation rate of 13,000 % by the end of the year.
The Petro advance sale, on the other hand, could be a first financial injection. This will start in just under two weeks. Last week, the president announced this with the signature of the Petro White paper and published new details for the first time. The Petro is to be used in the future with the help of passports and identity papers and thus bind citizens directly to the state in their financial management.
“The Petro will have a huge impact on how our access to foreign currencies will look like and how we will buy the goods and services we need from anywhere in the world,
so Maduro on Venezuelan television.
As was announced today, he wants to be re-elected in an early election on 22 April. Only his name will be put to the vote so far. According to estimates, this could also remain so against the will of the opposition.