Not giving up yet? Venezuela issues 2 oil-backed coins as Christmas gifts, but the public prefers cashing out rather than holding on.

Venezuela's state-owned oil company, PDVSA, distributed two Petro (PTR) cryptocurrency coins from its pension fund as Christmas gifts this year, directly depositing them into the government-backed crypto wallet, PetroApp. Despite the limited usability of the Petro coins, the citizens of the country have expressed their intention to transfer the two Petro coins out to purchase everyday goods or cover related expenses.

This is not the first time that the Venezuelan government has distributed a Christmas gift in the form of Petro. Venezuela started this "national airdrop" in 2019, distributing only 0.5 Petro coins to retired persons, civil servants, military personnel, and other eligible citizens.

Petro is a cryptocurrency announced by Venezuelan President Nicolas Maduro in 2017, backed by the country's oil and mineral reserves, aiming to maintain a stable price of $60. Initially, thousands of stores accepted Petro as payment, but the government immediately stopped people from exchanging Petro for Bolivars, leading to a lack of trust and reluctance to hold Petro.

At the same time, Petro faced strong opposition from then U.S. President Trump, who ordered a ban on Americans purchasing Petro.

As a result, the circulation of Petro was limited, and its impact was limited. After several rounds of nationwide distribution in the form of gifts, people chose to exchange Petro back to fiat currency and did not want to hold it.

Despite Maduro's assurance that the minimum wage would be equivalent to the value of Petro, this promise has not been fulfilled over the years. Currently, the minimum wage in Venezuela is about 3 cents, a far cry from the price of Petro.

This article is authorized to be reprinted from Horizon News Network