Petro Gold is a cryptocurrency. It was created in 2018 by Venezuelian government. As declared, petro gold is pegged to gold, but it isn't clear is it pegged to country's reserve or gold produced in the country. It is a second cryptocurrency announced by Venezuela. The first was petro which was alleged to be pegged to Venezuelian crude-oil.
Petro gold on crude-oil market
Petro gold is also an idea alternative to petro dollar. Most of the crude-oil trade on the world is made in U.S. dollars. Among others due to this fact dollar is today the backup currency. However some countries declared to trade crude-oil using gold. In the past it were Iraq, Libia and Iran. Also China attempts to trade crude-oil with Russia without using U.S. dollar. That can lower demand on U.S. dollar and lead to emerging a new backup currency.
- Zhang, Y. J., & Wei, Y. M. (2010). The crude oil market and the gold market: Evidence for cointegration, causality and price discovery. Resources Policy, 35(3), 168-177.
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