What Happened to Maduro’s Cryptocurrency? A Look at Its Fate

Seven years after its introduction, Petro—the cryptocurrency created by the government of Nicolás Maduro—has all but disappeared from Venezuela’s economy. Once touted as a solution to circumvent economic sanctions and stabilize the nation’s financial system, it never gained traction as a unit of value or digital asset. A corruption scandal in 2023 further sealed its fate, marking the end of its already limited influence.

A Bold Launch That Never Took Off

Maduro introduced the petro in 2018 as a state-backed cryptocurrency to counteract financial restrictions imposed by U.S. sanctions. Initially, it was said to be backed by Venezuela’s vast oil reserves, later expanded to include other natural resources such as iron ore and gold. The government promoted it as a means to facilitate international trade, bypass foreign restrictions, and provide an alternative store of value for Venezuelans amid hyperinflation.

Despite these promises, the petro struggled to gain acceptance. The United States swiftly prohibited transactions involving the currency, limiting its viability as an international exchange tool. Domestically, the government attempted to integrate it into the economy, using it as a benchmark for wages and encouraging citizens to convert their bolivars into petros. Yet, adoption remained minimal, and the cryptocurrency failed to establish itself as a widely accepted medium of exchange.

Corruption and Collapse

By 2023, petro operations were suspended following a multi-million-dollar corruption scandal linked to the state oil company PDVSA. Investigations revealed that the National Superintendency of Cryptoassets, a government body overseeing crypto transactions, had converted oil sales into cryptocurrencies and misappropriated funds. Several high-ranking officials, including the superintendent of cryptoassets, were arrested, dealing a final blow to the petro’s credibility.

According to economist Luis Crespo, the scandal effectively marked the end of the petro. “It’s another failure of government policy, and the country still doesn’t know where those millions of dollars went,” he stated. The fallout led to the closure of the Superintendency of Cryptoassets and a broader retreat from the Petro initiative.

An Experiment in Centralized Cryptocurrency

Unlike traditional cryptocurrencies, which operate on decentralized networks, the petro was entirely controlled by the Venezuelan state. Economist Carlos Ñáñez noted that this centralization contradicted the core principles of crypto assets. “It never met the criteria of a real cryptocurrency. It was a government-imposed token rather than a market-driven innovation,” he explained.

Maduro once claimed that the petro was thriving in global markets and was among the most stable cryptocurrencies. However, this assertion never matched reality, as its use remained confined to government-mandated transactions with little organic adoption.

The Final Fade into Irrelevance

Following the corruption scandal, Venezuela’s Central Bank ceased publishing the petro’s value. The government shut down digital wallets linked to its use, signaling an official end to the project. Meanwhile, the country’s economic policies have shifted towards reliance on traditional currencies. Vice President and Oil Minister Delcy Rodríguez emphasized a new economic strategy focused on local production and reduced dependence on imports.

Ñáñez described the petro’s demise as part of Venezuela’s broader monetary instability. “We once had the petro as a unit of measurement, but now it’s gone. The economy remains in crisis, with a weakened bolivar and a lack of coherent policies to ensure financial stability,” he said.

Maduro, who remains in power despite opposition claims of election fraud, continues to promise economic recovery through conventional financial instruments rather than digital assets. While the petro was once presented as a groundbreaking initiative, it ultimately became another failed experiment in Venezuela’s turbulent economic landscape.

Source: https://www.vozdeamerica.com/a/no-hay-rastros-petro-economia-venezuela/7988819.html