Smokescreen: what lies behind the development of a national cryptocurrency Venezuela?

Venezuelan cryptocurrency El Petro, supported by the oil of the country, can be a regular distraction debt-ridden government. About the same time, economists started talking after Venezuelan President Nicolas Maduro announced the release of a new Fiat currency. The details of the plot figured out Cointelegraph.

Why Venezuela crypt

This week, Maduro issued an official statement in which it announced the rebranding of the Venezuelan Bolivar (VEF). The new currency will be called the sovereign of Bolivar, and her bill will get rid of the five extra zeros. It is noteworthy that the issue of Fiat will be backed by cryptocurrency El Petro.

Now the cost of the same coin Petro is around $ 60 or 3600 sovereign bolivars. In fact, the country will increase imports, which will be involved with cryptocurrency.

On Friday on national television, Nicolas Maduro, said that the move is aimed at gradual withdrawal of dollars from the economy.

They reinforced the dollar our prices. I will weigh on oil prices and wages. We are going to use Petro as a universal measure of value to support the economy.

The CEO of a startup Cryptobuyer Venezuelan Jorge Farias noticed some inconsistencies in the strategy of Maduro.

One coin Petro is supposedly $ 60 or 3600 sovereign bolivars. Cryptocurrency backed up by oil, which is the national oil company PDVSA. The point is that PDVSA also has debts amounting to $ 45 billion. In real life, Petro does not exist. We have not seen any coins in circulation, blockchain code or smartcontract.

Exchange CEO BitInka Roger Benitez suggested that Maduro uses the blockchain as a “smokescreen” to divert attention from the last disastrous denominations in the country. Then to remove the zeros from banknotes Bolivar tried former President Hugo Chavez.

The current situation is complete nonsense. You cannot bind a Fiat to cryptocurrency that is backed by barrels of oil of the company. However, the company can not repay its huge debts.

The Venezuelan President has long been promoting Petro as a panacea for anything, from lack of housing and ending the unemployment of youth. Recall that the presale of cryptocurrency started in February, the ICO project has collected about $ 3.8 billion.

All of this can become a spectacular trick that will work. The question is — will it work for whom? For President Nicolas Maduro and his entourage? Or for ordinary Venezuelan citizens? Unfortunately, the probability of the first is much higher.

On the background of U.S. sanctions on the governments of Russia and Iran also are thinking about creating your own cryptocurrency. However, El Petro don’t want to accept other countries and the crypto currency exchange.


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