Venezuela’s oil-backed cryptocurrency raised $735m in one day, president claims

President Nicolas Maduro of Venezuela has claimed that the country’s oil-backed “petro” cryptocurrency raised $735 million in the first day of its pre-sale Wednesday.

The president said on Twitter that the petro token raised more than 4.777 billion Chinese yuan, or $735 million and the state-backed virtual currency “reaffirms our economic sovereignty.”

A grandes problemas, ¡grandes soluciones! Desde el primer minuto el juego arrancó bien, y arrancamos ganando: 4.777 millones de yuanes o 735 millones de dólares es el resultado inicial de las operaciones de intención de compra del Petro. #AlFuturoConElPetro pic.twitter.com/LoaDgj4rr1

— Nicolás Maduro (@NicolasMaduro) February 21, 2018

Estamos en la vanguardia tecnológica y económica para superar la especulación de las monedas internacionales que afecta la vida de los venezolanos. El Petro reafirma nuestra soberanía económica. #AlFuturoConElPetro pic.twitter.com/Jo72DQkSLz

— Nicolás Maduro (@NicolasMaduro) February 21, 2018

The country’s cryptocurrency regulator has said it hopes the petro will draw investment from Qatar, Turkey and other Middle Eastern countries, as well as from European nations and the U.S.

But a number of skeptics have raised concern about the country’s cryptocurrency ambitions, with some citing Venezuela’s debt problems and the possibility of asset manipulation as a cause for doubt.

Venezuela is currently facing hyperinflation, the collapse of its currency, the bolivar, and shortages in food and other basic necessities due to price controls.

Maduro has said that the petro will serve as a means for Venezuela to circumvent Western sanctions. Both the European Union and the United States have imposed economic sanctions on Caracas over their opposition to its autocratic government.