Operational problems plague Venezuelan petroblockchain, affecting user transactions – Cryptopolitan

The blockchain that powers the petro, the official cryptocurrency asset of Venezuela, has run into operational difficulties, disrupting functionality and raising concerns among the crypto community. According to a joint statement issued by Asonacrip, a local cryptocurrency association, and Cryptoland.vzla, the Petro blockchain experienced a halt in block generation on May 24, making transactions between different wallets impossible. While the blockchain briefly resumed block production on May 27, it faced another halt on May 28, exacerbating the challenges facing users.

Hundreds of petro wallets blocked or eliminated

In addition to the disruptions, Asonacrip and Cryptoland.vzla highlighted eliminating and blocking hundreds of petro wallets during the first blockchain shutdown. This sudden and unannounced action left many active community members unable to access their accounts. The exact reasons behind the elimination and blocking of wallets still need to be clarified, causing frustration and concern among users. Venezuelan journalist and Deputy Speaker of the Venezuelan Legislative Assembly, Mario Silva, took to social media to voice his concerns, hinting at a possible exploit and criticizing the lack of explanation given to affected users.

The state of the petro blockchain and its impact on the crypto ecosystem

The problems plaguing the petro-blockchain raise significant concerns about the trust and reliability of the Venezuelan crypto ecosystem. The sudden halts and blocking of wallets not only disrupts user transactions, but also undermines trust in both national and international communities. While the petro is a centralized currency, the government’s lack of transparency and sudden actions have left users feeling defenseless and resources frozen. This situation is particularly troubling given the crucial role of cryptocurrencies in navigating Venezuela’s economic challenges.

The ongoing investigation and intervention of Sunacrip, the Venezuelan cryptocurrency watchdog, further complicates the situation. The arrest of Joselit Ramirez, the former head of Sunacrip, over allegations of involvement in a multi-billion dollar crypto-corruption scheme has resulted in the interim management of the organization by an intervention board. Consequently, registered Bitcoin miners have been ordered to cease operations, causing significant financial losses to the sector.

Calls for clarity and safeguarding of user interests

In response to the challenges facing the petro-blockchain and the broader crypto-ecosystem in Venezuela, Asonacrip and Cryptoland.vzla demand clear and forceful responses from the authorities. While acknowledging the need to address mismanagement and bad practices, they stress the importance of avoiding arbitrary restrictions that stifle economic freedoms. The organizations demand a thorough investigation of individual cases rather than generalized restrictions that negatively affect the entire sector and hinder the country’s economic development.

The Venezuelan petro-blockchain is struggling with operational issues, affecting user transactions and raising concerns about the reliability of the crypto ecosystem. Eliminating and blocking petro-wallets without clear explanations has added to the frustrations of active community members. As the situation unfolds, it is imperative for the authorities to address the concerns raised, safeguard user interests, and promote an environment that promotes the development of crypto-economy in Venezuela.