## **PETRO AND ITS ECONOMIC DIMENSION**

PETRO AND ITS ECONOMIC DIMENSION

Since 2000, the US dollar has lost value against gold, which rose from $243.28 an ounce to $1,319.61 in January 2018. This means that the dollar has devalued 542% against gold. As a result, the purchasing power of oil- and mineral-exporting countries that invoice in dollars has also been eroded.

Since the emergence of the euro, the dollar has ceased to be a standard bearer in world trade. The dollar's loss of influence does not stop and is replaced by other currencies. Currency speculation generates a huge distrust of the dollar. The war between speculators never ends and the attacks erode the dollar and the euro as a store of value and cause great losses to the nations that receive their export earnings in these currencies.

If the US managed to impose the dollar as the predominant currency on international markets - even when it ceased to have gold backing - a cryptomoney backed by reserves of hydrocarbons, metals, precious stones and other natural resources will undoubtedly be much more solid and desirable as a means of payment and value reserve. Countries rich in oil and minerals can move towards a monetary and financial system sustained by their natural resources, a source of real wealth and real productive potential.

The consequences of international exchange rate speculation are borne by countries that export natural resources, since they receive their payments in dollars or euros that fluctuate sharply and, therefore, their purchasing power is impaired by receiving devalued dollars or euros. This has led to a growing questioning of the role of the dollar as an adequate international reserve currency. Issuing a common currency for the economic and financial relations of oil and mineral exporting countries would not only revalue their natural wealth, but also preserve the purchasing power of their export earnings. Oil producers could launch a cryptomoney with the support of their certified reserves to protect their trading capacity. A kryptom currency free of exchange rate speculation would ensure the ability to purchase oil and mineral export revenues in the medium and long term.

The BRICS have set out to transition to a multi-currency system. The new turbines of the world economy are Brazil, Russia, India, China and South Africa and the currencies of these countries tend to be increasingly accepted. On average, these economies continue to grow, while others stagnate or collapse. China managed to include the yuan in the International Monetary Fund's basket of currencies, making it an international reserve currency. As the world's largest oil importer, the Asian giant is seeking to eliminate the dollar monopoly as a means of paying for oil.

One step in this direction is the launch of yuan futures contracts on the Chinese stock exchange. These contracts attract the interest of oil-producing countries and buyers who have tense relations with the US, especially Russia, Venezuela and Iran. It is no coincidence that Venezuela began to quote the barrel of oil in yuan. In this context, trading in yuan futures contracts contributes to the de-dollarization of the oil market. Oil transactions in yuan can subtract hundreds of billions a year from the dollar in buying and selling operations.

Operating Mechanism

The first generation of cryptomonedas was not created by any government or central bank. However, the government can use blockchain technology to launch Petro. In fact, the Superintendency of Kryptonite announced that:
"Petro will operate with block chain technology, following the highest standards to ensure integrity, transparency, auditability and governance. (SUPCACVEN, 2018, 12)

Second Generation Coin Boxes

This new generation of centrally backed and issued cryptomes requires a revision of the initial conceptual premises, although blockchain technology is still used to issue them. The exchange rate of cryptomonedas -type Bitcoin- is not fixed by any Central Bank or government, but is defined by the market. In contrast, backed kryptonites have an exchange rate tied to the price of the natural resource that supports them. This opens the way for monetary initiatives by countries that own raw materials and energy resources, which could establish as a single currency backup the proven reserves of gold, silver, platinum, diamonds, emeralds, iron, aluminum, nickel, copper, uranium, oil, gas, etc.

New cryptomonets that are backed by internationally certified reserves are likely to show a more stable price. As it is anchored to the price of the natural resource on the international market, its fluctuations - however strong they may be - will not be able to register such ups and downs, such as those registered by Bitcoin at the end of 2017.

Private Pre-Sale and Initial Offer

A total of one hundred million (100,000,000,000) Petro will be issued, of which eighty-two million four hundred thousand (82,400,000) will be offered to the market in two stages:

I. Private presale = 38.40% (equivalent to 38,400,000 tokens)
II. Initial bid = 44.00% (equivalent to 44,000,000 petros)
Retention of SUPCACVEN = 17.6%.
Reference sales price: USD 60

The pre-sale was scheduled for March 1, 2018 and consented to the creation and sale of a pre-sale ERC20 token on the Ethereum platform block chain. The Initial Offer will pre-mine the one hundred million (100,000,000,000) in the block chain. At the beginning of the presale, the issue will be in the digital portfolios of the Republic.

In order to stimulate early demand, decreasing discounts (Dv) were applied from the initial batch. The first pre-sale lot was three million four hundred thousand (3,400,000) Petros which had a discount on the reference price of Venezuelan oil. The next lots will have five million (5,000,000,000) and the discount will decrease successively for each lot sold.

During the Initial Offer, four decreasing discount levels were applied for each five million (5,000,000) of Petro, to complete twenty million (20,000,000). Then there will be a fifth and final block of 24,000,000 to complete the Initial Offer of forty-four million (44,000,000,000). The pre-sale token may then be redeemed by Petro between the launch date and the closing of the Initial Offer, which will occur once the eighty-two million four hundred thousand (82,400,000) units that will be put up for sale are exhausted, and on whose placement the government's aspiration to collect the equivalent calculated at $60 /PTR, less the discount (Dv), depends. If of the total of 100 million petros (100,000,000,000), eighty-two million four hundred thousand (82,400,000) are offered through a Private Pre-Sale and an Initial Offer, these must be open to all and absolutely transparent.

A poorly managed Petro will repeat the dark history of CADIVI, CENCOEX, SITME, SIMADI, DIPRO and DICOM, in which only a privileged few had access to the preferred currency, while most natural and legal persons were excluded.

Bibliography

Álvarez R., Víctor (13/12/07). Cinco claves para evaluar si el Petro puede ser una
criptomoneda. El Estímulo.
http://elestimulo.com/elinteres/cinco-claves-para-evaluar-si-el-Petro-puede-ser-una-criptomoneda
Álvarez R. Víctor (17/12/17). ¿El Petro es una criptomoneda?
http://www.ultimasnoticias.com.ve/noticias/opinion/victor-alvarez-Petro-una-criptomoneda/
Álvarez R. Víctor (12/01/18). Ventajas y desventajas de las criptomonedas. El Estímulo.
http://elestimulo.com/elinteres/ventajas-y-desventajas-de-las-criptomonedas/
Álvarez R. Víctor. El Petro como inicio de una reforma monetaria. El Estímulo.
http://elestimulo.com/elinteres/el-Petro-como-inicio-de-una-reforma-monetaria/
Gaceta Oficial N° 6346. Decreto 3.196, mediante el cual se autoriza la Creación de la
Superintendencia de los Criptoactivos y actividades conexas venezolana. Caracas, 8 diciembre 2017.
Purroy, Miguel Ignacio (2013). ¿Moneda propia o común ? Teoría y experiencias de la
integración latinoamericana. La Hoja del Norte.
Cyngular Asesoría 357, CA. Caracas, 2013.
Salvatore, Dominick (1995). Economía Internacional . Mc Graw Hill Interamericana, S.A. Santa Fe de Bogotá, 1995.
Superintendencia de Criptomonedas y Actividades Conexas Venezolana. (SUPCACVEN). (2018). El Petro. Papel Blanco. Gobierno Bolivariano de Venezuela. Caracas.

Thank you for your attention, remember to make your comments when you vote.

Greetings friends....