Venezuela's Petro Digital Currency Failure Highlights State Collapse
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 04 2026- Birth of a Digital Currency: Launched in February 2018 by President Maduro, Venezuela's Petro aimed to combat hyperinflation nearing 1,000,000% through blockchain technology; however, it ultimately failed to gain public trust, exacerbating the economic collapse.
- Illusion of Official Currency Status: Although elevated to official currency status in August 2018, with pensions and military salaries partially paid in Petro, widespread payment failures and system defects led to low acceptance, with real trading values often falling below the government-set price.
- Corruption Accelerates Collapse: In 2023, a major corruption scandal revealed billions in oil revenues laundered through crypto channels, resulting in the shutdown of the regulatory body SUNACRIP and the silent cessation of Petro trading, marking the project's definitive failure.
- Technology Cannot Replace Trust: The failure of Petro stemmed not only from U.S. sanctions but also from the government's inability to address structural economic issues, illustrating that technology cannot substitute for credibility and turning Petro into a digital symbol of state collapse.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
