Monday, June 17, 2019

The Petro Is Legal Tender, But It Still Lacks A Working Wallet

The Petro Is Legal Tender now in Venezuela, according to a sentence dictated by the highest court of that country. this would be effectively the first time that an official cryptocurrency is declared legal tender by a state. But this seems to be just in paper only because Venezuelans have not been able to buy Petros even after being announced that they would. In fact, the Petro wallet app is still not active.

The Petro Is Legal Tender But You Cannot Spend It.

According to the source, the status of the Petro is now of legal tender in the whole territory of Venezuela, making it a historical fact. This would be the first official cryptocurrency that is also accepted as legal tender and backed by a Court sentence.

The Petro saga started way back when the first ICO was announced earlier this year and the whole world followed it; nonetheless, it was a paper launch, and while it was announced with fanfare, it did not deliver Venezuelans a working product to earn and spend.

However, now it seems that the Venezuelan government is trying again to apply their project to make the Petro a defacto alternative legal con for the bolivar, the fiat Venezuelan currency. The approved document states:

“The venezuelan state will promotem protect, and guarantee the use of cryptocurrencies as payment methods in the public, private, mixed and conjounct companyes and businesses, inside and outside the national territory”

however, for this task, there are still real challenges to face.

Buyable, Not Spendable

The Venezuelan government announced last month that the Petro would be able to be bought with bolivars in any bank, but to the day, the few people that have been able to buy Petros have spent dollars or other cryptocurrencies to get their Venezuelan cryptocurrency.

The other caveat is that the customers are not really buying Petros, they are buying a certificate that tells they bought Petros and the government will transact their Petros to them. This is virtually an IOU issued by the Venezuelan government.

This will effectively mean that the wallet app for the Petro is still not ready and in the works. The new Petro whitepaper states that the new version of this crypto asset is based on Dash, an x11 cryptocurrency; wallets should be fairly easy to implement for a seasoned group of programmers, so it is weird that the Venezuelan government still lacks wallet functionality for their official crypto asset.

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