The Venezuelan government will reportedly shut down the Petro (PTR), the state-issued oil-backed cryptocurrency, which has been controversial and has not seen mass adoption by citizens in the country.
According to reports, cryptocurrency wallets on Patria, the trading platform for Venezuela’s petro, will stop working on Monday, January 15, with remaining petros converted into bolivars, the country’s fiat currency.
Petro’s demise comes nearly six years after it was officially launched in 2018. Venezuelan President Nicolas Maduro said at the time that cryptocurrencies would help circumvent harsh sanctions imposed by the US government and would also help the country’s collapsing economy.
However, the state-issued cryptocurrency, which was an ambitious project, failed to see widespread adoption among citizens, with the country’s lawmakers calling the token unconstitutional in 2018 before its official launch.
Despite criticism from inside and outside Venezuela, the Maduro administration has continued to move forward with the PTR project, stating that the passport fee will be paid for with PTR technology. In 2020, the President emphasized that the symbol will play a decisive role in Venezuela’s economic recovery.
While the petro may not have enjoyed widespread adoption, Venezuelans have embraced other cryptocurrencies, such as Bitcoin.
Opposition leader Leopoldo Lopez has reportedly endorsed cryptocurrencies, saying they have helped Venezuelan citizens protect their savings from the continuing decline in the value of the bolivar.