Venezuela says will pre-sell ‘petro’ cryptocurrency on Feb. 20

A pre-sale of Venezuela’s brand-new “petro” cryptocurrency will begin on Feb. 20, President Nicolas Maduro said on Tuesday, a move in which the government hopes will help pull the country out of a dire economic crisis.

Critics have slammed the initiative as not only illegal however nothing more than a debt issuance by the government amid quadruple-digit inflation as well as major shortages.

Maduro has previously said Venezuela will issue 100 million tokens, each valued at — as well as backed by — the equivalent of one barrel of Venezuelan crude.

in which could put the value of the entire petro issuance at just over $6 billion.

“All the cryptocurrencies of the entire world have been revalued after Venezuela’s announcements about the creation of the petro,” said Maduro in a speech broadcast on state television.

Venezuela can be seeking to raise hard currency amid a crippling crisis.

The government has said in which the petro issue will help the cash-strapped country make financial transactions as well as overcome U.S. sanctions against Maduro’s socialist government.

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