The Venezuelan national cryptocurrency, Petro ($PTR), is set to cease operations on January 15, marking the end of a digital currency intended to counter U.S. sanctions.
Launched in 2018 by President Nicolas Maduro, Petro aimed to circumvent economic restrictions but faced significant challenges.
Despite achieving full functionality in 2020, it was never widely traded internationally, and attempts to promote its domestic use were hindered by the lack of legal tender status.
The largest bank in Venezuela, Banco de Venezuela, refused to accept Petro without a presidential order. The closure announcement reportedly appeared on the government-run Petro website, which is currently inaccessible.
The digital currency’s troubled history also involved a $5 million bounty issued by the U.S. for the capture of Joselit Ramirez Camacho, the official overseeing Petro, who faced accusations related to international narcotics trading.
The closure of the agency overseeing Petro led to the shutdown of crypto exchanges and mining operations in Venezuela. Despite Petro’s demise, the Central Bank of Venezuela’s plans for a central bank digital currency (CBDC) in 2021 did not materialize.