Venezuela to Abandon National Digital Currency El Petro

The Venezuelan authorities have decided to discontinue the development of the national digital currency El Petro. On January 15, all coins will be automatically converted into local bolivars, reports Barrons.

According to the publication, on the same day, all cryptocurrency wallets on the Patria platform—the “only” site where El Petro is traded—will be closed.

De muy buena fuente nos llega la triste noticia de que el próximo 11 de Enero de 2024 muere oficialmente el Petro (PTR).

Entre gallos y medianoche, la Junta Reestructuradora de la SUNACRIP, decide apagar definitivamente lo poco que quedaba de este ecosistema, intercambiando de… pic.twitter.com/gImuk8k0dL

— CryptoLand.Vzla (@CryptolandV) January 9, 2024

“From a very reliable source, we received the sad news that on January 11, Petro (PTR) officially died,” reads the message from CryptoLand Venezuela.

The digital currency El Petro, supposedly backed by the country’s oil reserves, was introduced in 2018. Several local businesses were mandated to conduct transactions using it. Venezuelan President Nicolás Maduro announced a new system of salaries and prices tied to the national digital currency.

The coin did not gain significant demand, and retailers refused to accept it as payment. However, in 2021, Simón Bolívar International Airport in Maiquetía added the option to pay for airline tickets and other services using El Petro, as well as Bitcoin and DASH.

In 2021, Maduro ordered social benefits to be converted into El Petro. The initiative aimed to protect benefits from hyperinflation.

At the same time, Venezuela planned to launch a separate CBDC—the digital bolivar—in October of that year.