For years, Venezuela has been making headlines in the cryptoverse, and not for small reasons. The Petro coin, often recognized as the pioneer of state-backed crypto assets, raised eyebrows across the globe. However, basking in its past glory seems to not be enough; multiple incidents suggest that the coin, which gained traction due to its oil-backed reserves, is now in the downfall.
Only a few years ago, both local and international audiences saw Venezuela as a promise to the world of crypto and blockchain. The state-run agency that conceived the Petro touted it as a significant tool for remittances and trade. Fast forward to today; the state crypto agency has since been disbanded following a significant corruption crackdown earlier this year. Naturally, the nation’s ambitious crypto plans are now appearing to be on the verge of worsening.
Further compounding this decline is the series of events following the crackdown. From noted irregular behavior on the Petro blockchain by its users since May to the state’s PetroApp platform being riddled with errors, the crypto vision of Venezuela appears to be eclipsed. A halt has also been put to all significant maintenance or development work on both the app and the network. The much-publicized crypto mining crackdown has hit the nation hard, snaring even units of its army.
Today, the state of affairs seems bleak. The highest-profile casualty of the crackdown, Joselit Ramírez, the president of the National Superintendence of Cryptoassets (SUNACRIP), sits in a jail cell. A noteworthy portion of SUNACRIP’s technical staff was swept away as part of the crackdown. The new board in charge of crypto operations appears to have its attention on other matters.
Experts offer rigorous insights on the issue. Financial analyst Henkel García suggests a comparison of the Petro with the more mainstream cryptos like Bitcoin reveals crucial differences. The scandal-drenched PDVSA, Venezuela’s state-owned oil and natural gas company, was allegedly misused by corrupt politicians who used cryptos to embezzle funds.
Sadly, Petro’s descent has been expedited by international sanctions imposed on the nation, which has resorted to irregular oil sales and clandestine commercial operations. Meanwhile, corrupt government officials reportedly utilized crypto transactions to misappropriate resources, leaving scarcely any crypto advocates remaining in the government.
As it stands, the future looks bleak for the Petro – a coin that once held such promise, only to see its prospects dashed by controversy and neglect.
Source: Cryptonews
