Venezuela will become the first country to launch its own version of bitcoin, a move it hopes will provide a much-needed boost to its credit-stricken economy.

Officials say the so-called petro is backed by Venezuela's crude oil reserves, the largest in the world.

Many also doubt the government's commitment to transparency.

"My advice would be to tread very carefully with this - especially considering the track record of the Venezuelan government," said Federico Bond, co-founder of Signatura, a digital currency startup based in Argentina.

In total, Venezuela plans to issue 100 million digital tokens, starting with a pre-sale of 38.4 million that starts Tuesday and whose reference price is the current cost of a barrel of oil, or around $60.

"Petro will be an instrument for Venezuela's economic stability and financial independence, coupled with an ambitious and global vision for the creation of a freer, more balanced and fairer international financial system," the government said in a 22-page white paper, translated into English, outlining its plans.

Bitcoin and other digital tokens are already widely used in Venezuela as a hedge against hyperinflation and an easy-to-use mechanism for paying for everything from doctors' visits to honeymoons in a country where obtaining hard currency requires transactions in the illegal black market.