Venezuela to Issue Second Cryptocurrency, Gold-Backed One This Time

The presale of the national cryptocurrency of Venezuela El Petro started just two days ago, but President Nicolas Maduro has already announced plans to issue another digital currency.

Despite all the doubts of cryptocurrency and blockchain experts, who branded El Petro "a pipe dream", Venezuela's government has no intentions to stop and plans to issue a cryptocurrency called Petro Gold, which will be backed with precious metals reserves of the country.

President Maduro told national TV: 

"Next week I'm going to launch the petro gold, backed by gold, which is even more powerful, that will strengthen the Petro."

It is unclear, whether the cryptocurrency will be backed with reserves of country's central banks or with still undeveloped gold deposits. The president has not yet provided any details. 

Gold-backed cryptocurrencies already exist. One of them is Royal Mint Gold (RMG), which is being developed by the Royal Mint of Great Britain. Users of this cryptocurrency will be able to keep their gold-backed assets on blockchain.

But is there any sense in such cryptocurrencies? The founder of crypto-investment company Redwood City Ventures Sean Walsh believes that it is still too early to jump to conclusions about Petro Gold, yet he admits that he does not have any interest in such digital assets.

He told Reuters:

"Rather than buying a cryptocurrency backed by gold, I’d just go buy the gold,” said Walsh in a telephone interview. “Gold is a physical thing that you want to be able to hold in your hands, because that’s the point."