After the announcement by President Nicolas Maduro the launch of Petro, the official cryptocurrency of Venezuela, it has faced many ill-words from opposition-run parliament. But the Venezuelan government has said that cryptocurrency mining is now completely legal and it plans for Petro presale in February.
The ‘cryptocurrency superintendent’ Carlos Vargas confirmed that the citizens mining Bitcoin and other cryptocurrencies aren’t breaking the law.
Last year, Venezuela made headlines on several occasions after reports emerged that police were cracking down on mining operations, accusing those involved of sapping power from the national grid.
Vargas took a humongous u-turn and said,
“It is an activity that is now perfectly legal. We have had meetings with the Supreme Court so that people who have been victims of seizures and arrests in previous years will have charges dismissed.”
Petro has faced uncertain future since its announcement and many believe that the investors will be hard to come by given the numerous sanctions on Venezuela.
Petro is designed to be backed by Venezuelan oil reserves, each token equalling one oil barrel. This makes Petro’s market value at $6 bn with $100 million in supply.