Venezuela to launch new virtual currency

Venezuelan President Nicolas Maduro has announced the creation of a new virtual currency in a bid to ease the country's economic crisis. 

He said the Petro would be backed by Venezuela's oil, gas, gold and diamond wealth. Opposition MPs, however, poured scorn on the plan.Venezuela's economy has been hit by falling oil revenue and the plummeting value of its existing currency, the bolivar. 

President Maduro has also railed against US sanctions which he describes as a blockade.

In a televised announcement on Sunday,



Mr Maduro said the new crypto-currency would allow Venezuela to advance in issues of monetary sovereignty, to make financial transactions and overcome the financial blockade. He gave no details on how, or when, the new currency would be launched.

Venezuela is mired in a deep economic crisis triggered mainly by a fall in crude oil prices and a drop in oil production. Petroleum is its main source of hard currency.

Over the past year, the Venezuelan bolivar has plummeted 95.5 per cent against the dollar on the black market.