Venezuela to launch Youth Bank with the Help of Petro Coin
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Venezuela to launch Youth Bank with the Help of Petro Coin

Venezuela to Launch Youth Bank with the Help of Petro Coin

Venezuela will launch a Youth Bank with the help of funds generated from its petro token. It is one of the countries that are keen on promoting digital coins for its own purposes. Though the country unveiled petro digital coin a few months ago, there were also a lot of controversies attached to it. Now, the country is also keen to promote the virtual currency in return for selling its oil at a discount that emerging countries would not like to afford.

Students and Young People

On Thursday, Venezuela president, Nicolas Maduro, declared that his country would establish a bank with a focus on students and young people. The president expressed his confidence that the operations would start with 20 million Petros, coindesk reported. During the pre-sale of the petro coin, the country has raised as much as $3 billion. These tokens were backed by oil-based assets. Its president indicated that the country would use the funds to address the issues concerning its economy. The nation has already been facing sanctions from the Western countries, and the move to issue token was termed as circumventing the sanctions. However, some of the countries like the United States were not happy with Venezuela’s actions.

While speaking at a youth ceremony in Aragua state recently, Maduro indicated that nearly $1.2 billion worth of digital currency would provide to the new institution. This should help and start operating the Youth Bank. He disclosed that the bank’s objectives would be to lend his support to ‘productive initiatives.’

While delivering a speech, Venezuela president indicated that each university would get a mining farm. This would enable the universities to produce digital currencies so that they could strengthen the economy of the country. Of late, people are resorting to issuing of virtual tokens to raise funds. Even social organizations like Unicef has shown a keen interest in making use of the growing sector to fund its projects. These organizations are not worried about any impending issues due to regulators tightening their screws.

Though the country has issued its Petro token in February last, it has attracted a wider criticism from not only political leaders but also economists and analysts. Some analysts are not ready to buy the argument that the country has raised $3 billion. There was some fear that there could be some scam involved in the petro token issue though there was nothing to confirm that.

Second Cryptocurrency

Significantly, Venezuela’s opposition parties led by Congress has also not spared its president in condemning the cryptocurrency, i.e., petro. They have charged him with borrowing in a different route against the assets of the country. Before the petro token launch, the opposition has termed it illegal.

However, the president is not ready to succumb to any pressures from either within or outside the country. He has already indicated that he would plan a second digital currency offering that would be supported or backed by its gold reserves. That could also invite criticisms since it is also traded on the American currency basis around the world.

Article written by Wilma Woo

Wilma stumbled into Bitcoin while studying for her masters in international relations. She began researching, which quickly turned to hodling and a contract to spread the word from TokenHunch.