Maduro Recruiting Miners For Venezuela’s Oil-Backed Cryptocurrency, Petro

Venezuela launches nationwide recruitment for the Petro mining farms.

Only days after announcing on national TV a formal decree launching the country’s asset-based cryptocurrency, the Petro, Venezuelan President Nicolas Maduro is hiring miners across the country to harvest the digital currency from the Petro mining farms.

To beef up the nationwide recruitment, the Unique Registry of Digital Mining (URDM) will stay open until January 21 to accept application from miners and provide access to the new digital currency, reports local newspaper El Impulso. Registration to the URDM is a requirement for natural and legal persons to have access to the Petro.

China C-Bank May Try Indirect Regulation of Bitcoin Mining


“Registration in the RUMD will also guarantee those who are registered there, to be able to acquire any other type of free-use cryptocurrency and demand in Venezuela, as long as they are duly authorized.”

Maduro claims a total of 860,811 young people have signed up to “work” in the mining farm project as of press time. Some 300,000 of which have already begun working on it as part of the government’s Chamba Juvenil initiative. A mining software was developed to interconnect the computer hardware to be used in the project, Maduro adds.

“We are going to call them a special cryptocurrency team…[They will] set up cryptocurrency mining farms in all states and municipalities of the country,” El Universal quoted president as saying.

Venezuela is Turning to Cryptocurrency to Fight Hyperinflation

The socialist government has turned to cryptocurrency to fight a crippling hyperinflation that saw prices of basic necessities to skyrocket. Most of the country’s population have taken to Bitcoin mining to survive as electricity, which is vital in cryptocurrency mining, is a lot cheaper and affordable in Venezuela than most basic goods.

In December, Maduro announced his plans to launch the country’s national cryptocurrency to save the crisis-hit country’s economy.

Petro to Pay Venezuela’s International Suppliers

With its dollar-reserve dwindling by the day, the Maduro administration is also pushing for the Petro to be used as payment for the country’s international suppliers, while avoiding difficulties for imports.

Venezuela wants Petro – which is backed by 5.3 billion barrels of oil, gold, and diamond – to be accepted as payment in international financial transactions after a shipment of pork from Portugal was delayed for days because the banks prevented payments due to sanctions imposed this year by the U.S. government. The pork was originally intended for distribution to hungry Venezuelans for Christmas.

Maduro described the delay as "sabotage."

"That is going to end when the cryptocurrency is used for the exchange," Communication Minister Jorge Rodríguez said.

"It will be materially impossible for the dictatorial financial centers of the world to intervene against this initiative.

The crisis in Venezuela has also led to the creation of the Bolivarcoin (BOLI), a small-scale digital asset, which however has seen rapid appreciation lately. The Bolivar Coin is mostly tradable on Cryptopia.

 

The Bolivarcoin has the advantage of an earlier launch, as the Petro has not developed its infrastructure yet.