Following the recent announcement on plans to launch an oil-backed ‘Petro’ cryptocurrency, Venezuelan President Nicolas Maduro has announced the setting up of a body that will govern the transactions with the cryptocurrency.

On December 8, 2017, Maduro signed decree for the creation of the Superintendence of El Petro Cryptocurrency.

“I announce the creation of the Superintendence of the Venezuelan Cryptocurrency and its relationship with the world, I create a special superintendence to govern the direction of Petro from Venezuela and the world," he said during a public ceremony (loosely translated from Venezuelan News Agency avn).

According to VTV, Maduro said that former President Hugo Chávez explained to him the idea of creating a currency from the oil reserves, the Petro, on several occasions.

Maduro further appointed member of Constituent Assembly, Carlos Vargas, as the head of the governing body.

"We are opening the doors to modernity, Venezuela once again becomes the showcase of the world. That dream of Commander Chávez, we are going to materialize it and we are going to turn it into the first cryptocurrency backed by the Venezuelan oil reserves, certified internationally,” Vargas said in a statement (translated from Venezolana de Televis on).

According to an official blog post, the Petro cryptocurrency system will be backed by the wealth of oil, gas, gold and diamond that the country possesses.