The government of Venezuela has ended the Petro (PTR) cryptocurrency, founded in 2018 to support the nation’s currency due to an overwhelming economic crisis. Venezuela ends its Petro cryptocurrency programme on 16 January 2024, more than five years after it was first launched, according to a message displayed on the Patria Platform, the only website where the Petro was tradeable.

In response to a severe economic crisis exacerbated by US sanctions, the country’s government introduced the Petro (PTR) in February 2018 to bolster the national currency, the bolivar. The token, backed by Venezuela’s rich oil reserves, was shrouded in controversy even before the launch. The country’s opposition-controlled congress said it was illegal to borrow against the oil reserves.

In 2019, US authorities sanctioned a Russian bank for financing the Petro. The Venezuelan government made several attempts to link the Petro with services, for example, it was required to obtain passports to fund a social housing initiative and the minimum wage was 50% pegged to it. Any remaining petros are being converted to bolivars, the ailing local currency, according to one report.

The final nail in the coffin for the Petro was a corruption scandal over financial irregularities around using crypto assets for oil operations which led to the resignation of the petroleum minister and a crackdown on bitcoin mining operations, AFP reported. The Latin American crypto landscape In an interview for The Paypers, the founders of 1931.io underscored the growing cryptocurrency landscape in Latin America (LATAM), particularly its potential for crypto mining. Despite varying legal stances on Bitcoin, most LATAM countries are actively exploring regulations for their local markets.

Robust user communities in Venezuela and Colombia, coupled with grey legal zones in countries like Ecuador, contribute to LATAM's appeal for crypto investment. The region’s attractiveness lies in factors such as volatile local currencies, a large unbanked population sensitive to transaction fees, and an accessible labour market fostering lean crypto companies. Cryptocurrencies address currency instabilities, providing stability and safety, especially in nations like Venezuela and Argentina.

Widespread smartphone adoption in the region further enhances the appeal of low-cost alternatives like cryptocurrencies. 1931.io envisions participating in LATAM's crypto adoption, with a focus on renewable energy for crypto mining. The article introduces the concept of crypto mining, distinguishing between proof of stake and proof of work models.

It emphasises that crypto mining is not an extraction process but a race to solve complex mathematical problems, rewarding miners in cryptocurrencies. Potential monopolies in the proof of stake model, where a few entities control a significant stake, are acknowledged as a consideration in the evolving crypto landscape. .