The Venezuelan government ended the Petro (PTR) cryptocurrency, founded in 2018 to support the country's currency due to an overwhelming economic crisis.
Venezuela ends its Petro cryptocurrency program on January 16, 2024, more than five years after it was first launched, according to a message displayed on the Plataforma Patria, the only website where the Petro could be traded.
In response to a severe economic crisis exacerbated by US sanctions, the country's government introduced the Petro (PTR) in February 2018 to bolster the national currency, the bolivar.
The token, backed by Venezuela's rich oil reserves, was mired in controversy even before its launch. The country's opposition-controlled congress said it was illegal to borrow against oil reserves. In 2019, US authorities sanctioned a Russian bank for financing the Petro.
The Venezuelan government made several attempts to link the Petro with services; for example, it was required to obtain passports to finance a social housing initiative and the minimum wage was pegged at 50%.
The remaining petros are being converted to bolivars, the weakened local currency, according to a report. The final nail in Petro's coffin was a corruption scandal over financial irregularities surrounding the use of crypto assets for oil operations that led to the resignation of the Oil Minister and a crackdown on bitcoin mining operations, AFP reported.
The Latin American crypto landscape
in a interview for The Payers, the founders of 1931.io highlighted the growing cryptocurrency landscape in Latin America (LATAM), particularly its potential for crypto mining. Despite the different legal stances on Bitcoin, most LATAM countries are actively exploring regulations for their local markets. Strong user communities in Venezuela and Colombia, along with legal gray areas in countries like Ecuador, contribute to LATAM's attractiveness for cryptocurrency investment.
The region's appeal lies in factors such as the volatility of local currencies, a large unbanked population sensitive to transaction fees, and an accessible labor market that encourages efficient crypto businesses. Cryptocurrencies address monetary instabilities, providing stability and security, especially in countries like Venezuela and Argentina. The widespread adoption of smartphones in the region further increases the appeal of low-cost alternatives such as cryptocurrencies. 1931.io plans to participate in the adoption of cryptocurrencies in LATAM, with a focus on renewable energy for crypto mining.
The article presents the concept of crypto mining, distinguishing between proof-of-stake and proof-of-work models. It highlights that crypto mining is not a mining process but a race to solve complex mathematical problems, rewarding miners in cryptocurrency. Potential monopolies in the proof-of-stake model, where a few entities control a significant stake, are recognized as a consideration in the evolving crypto landscape.
