Venezuelan Petro coin to be used for property investment
The oil-backed, Venezuelan cryptocurrency Petro Coin will allow residents to purchase new homes and property, according to reports coming out of the South American country.
Currently, any legal citizen or legal entity within the country can purchase Petro Coin, the world’s first state-owned digital token, via the coin’s official website. They can be purchased with fiat currencies like Russian Rubles, Chinese Yuan, Turkish Lira and the Euro, as well as with cryptocurrencies like Bitcoin, Ethereum and NEM. And as of April 20, that currency can be spent on purchasing a new home or investing in retail property.
The coin has attracted various criticism since its announcement and subsequent roll-out. While the coin has no real market use as of yet – and is targeted primarily at the average investor – integrating the token into the country’s economic system has proven a difficult task. But that could be about to change.
President Maduro has rubber-stamped plans to build three million housing units, all of which will be financed by funds raised through Petro. There will also be four special and exclusive economic zones designed to circulate the new coin located in Los Roques, Paraguaná, Ureña and on the Margarita Island, with goods and services within those locations to be priced up in Petro, via Bitcoin.com. Three million homes sounds like an enormous amount, but it is worth noting that this is part of a state wide plan that has been in place since 2011, and initially just 235,000 will begin construction.
Why is the Petro controversial?
The Petro coin’s controversy stems from the fact it was openly created to subjugate U.S financial sanctions on Venezuela. President Donald Trump has since signed an order that prohibits US citizens from owning and using Petro. “All transactions related to, provision of financing for, and other dealings in, by a United States person or within the United States, any digital currency, digital coin, or digital token, that was issued by, for, or on behalf of the Government of Venezuela on or after January 9, 2018, are prohibited,” the order said.
More information on the plans to integrate Petro into the country’s economy via housing sales should come to light when the country hosts a global blockchain and cryptocurrency technology event, which is due to take place in mid-April.