The Venezuelan Petro 

Venezuela will launch its own cryptocurrency on November 5th. This will be the first time a nation or country will issue an official crypto currency which will also be backed by oil and other commodities. However, there are many problems with this new currency, the price of its offering, and other issues when you start to analyze the money trail.

They are doing this to get around sanctions which have crippled their economy. The price of the currency is supposed to be backed by oil and other materials but there is a lot of doubt as to how that will be done or whether the initial asking price of 60 dollars will be a fair price to pay for the initial offering. The price is set by the Venezuelan government initially, which they want to peg to the price of a barrel of Venezuelan oil, however, there seems to be much doubt in the cryptocurrency markets as to the validity and function of this cryptocurrency from Venezuela. Venezuela is a massively corrupt government, which has failed to control its own currency, the Bolivar, against hyperinflation of 1.3 million percent this past year, according to the International Monetary Fund (IMF).

The President of Venezuela has stated that it will begin trading on six major cryptocurrency markets, but there is a lot of skepticism as to the validity of the price and whether it will be properly backed, as they claim it will be by commodities. This could be a sign of desperation by the Venezuelan government to respond to a crisis in their currency devaluation by issuing a new currency which they now claim is backed by real materials.