Venezuela’s opposition-run parliament on Tuesday called the proposed digital currency “Petro” “an effort to illegally mortgage the cash-strapped country’s oil reserves,” Reuters reported.
Legislators warned investors that the petro would be seen as null and void once incumbent socialist President Nicolas Maduro is no longer in office.
“This is not a cryptocurrency, this is a forward sale of Venezuelan oil,” said legislator Jorge Millan.
“It is tailor-made for corruption.”
The lawmakers added that the Petro issue violates constitutional requirements that the legislature approve borrowing.
In the coming weeks the Venezuelan government plans to issue 100 million petros, backed by 100 million barrels of oil reserves.
The government hopes will help fight both sanctions and Venezuela's high inflation rate.