Dagong Global Credit Rating, one of China’s largest credit rating agencies, has published a report on Venezuela’s oil-backed crypto-oil Petro (PTR) in recent days. Raporda said, “Crypto money can help turn the international currency system into its essence.”
While the Agency did not comment on whether Petro would help improve the Venezuelan economy, he noted that a petroleum-supported crypto is different than the other crypto paralms that are not supported by any entity such as bitcoin.
According to the agency, Venezuela is struggling to return the international monetary system to its core. In addition, the fact that the country has oil reserves means that Petro will be protected from extreme fluctuations and speculations in the crypto money market.
Raporda also noted that the international monetary system was dominated by the US dollar after the collapse of the Bretton Woods system.
The frequent occurrence of crises is a sign that the US dollar has not actively played its role in the international system. In such cases, cryptographic schemes can be very beneficial for the development of countries and for international payments.
The Bretton Woods Conference developed a fixed exchange system based on gold, followed by the IMF and the World Bank. The currencies of other countries are indexed, and dollars are indexed. But in 1971, when the dollar was devalued and the US abandoned its gold standard, the resulting system collapsed.
Dagong’s report It ends up stating that Petro is oil-backed and that oil is an irreplaceable source. Dagong also explained that Petro would closely follow developments. Petro’s sales are continuing and according to Nicolas Maduro, 171,000 companies and investors have registered to buy Petro.
Preliminary sales figures were announced at $ 735 million on the first day; but no evidence was provided. Also Maduro gave instructions for accepting national currencies in payments to state institutions.
After Petron came forward sales in Turkey, Russia and is among the countries that started to work for the local crypto currency in Iran.