lldemaro Villarroel, minister for Habitat and Housing, disclosed that the government of Venezuela is preparing to use its oil-backed crypto, the Petro, in order to finance the construction of villas.
The villas will be funded as part of Venezuela's housing project "la Gran Misión Vivienda Venezuela (GMVV)," aims to offer all homeless families accessible and better housing solution, and this will be with the help of data produced by the people in the community willing and able in solving the big puzzling circumstance of family housing deficit, according to Telesur, a local news outlet.
The minister said that 33 local companies are passing through technical, financial and logistical validation processes to execute major construction projects.
"Together with the governors we reviewed plans that we will start up in the second quarter, in this second quarter the GMVV will have an injection of financial resources, which this year will be protected and established with Petro," Villarroel said.
Venezuela's president, Nicolas Maduro, ratified the use of $750,000 and 909,000 Petros to construct the new villas, adding that the oil-backed crypto provides benefits that fully portray a defensive shield for housing construction.
Venezuela has been providing the Petro different use cases, supposedly in a trial to pump demand. The country may charge for all exports in the oil-backed crypto and gave India a 30 percent discount on crude oil if it is all paid for with Petros, but India finally rejected this offer.
In April, Daniel Peña, the executive secretary of Venezuela's Blockchain Observatory, stated that the crypto's impact would be registered within 3 to 6 months.
The hundred-year-old think tank Brookings Institute has also highly claimed that the Petro hinders legal cryptocurrencies, as its trading was factually a way for the country to circumvent international sanctions and generate in foreign capital. There is a claim that the crypto's whitepaper will be generally used when settling taxes, public services and fees.
The oil-backed crypto has been jumbled in a strife with Venezuela's National Assembly announcing it as unconditional which forced the U.S President, Donald Trump to ban all U.S citizens from trading in it, though the move was a free publicity.
Venezuela's Petro saga was put to continue indefinitely in May after Maduro winning another term as a president of the country in a highly contentious election.