BBC: Venezuela unveils virtual currency amid economic crisis
Venezuelan President Nicolás Maduro has announced the creation of a new virtual currency in a bid to ease the country's economic crisis.
He said the Petro would be backed by Venezuela's oil, gas, gold and diamond wealth.
Opposition lawmakers, however, poured scorn on the plan.
Venezuela's economy has been hit by falling oil revenue and the plummeting value of its existing currency, the bolivar.
President Maduro has also railed against US sanctions which he describes as a "blockade".
In a televised announcement on Sunday, Mr Maduro said the new crypto-currency would allow Venezuela "to advance in issues of monetary sovereignty, to make financial transactions and overcome the financial blockade".
"The 21st Century has arrived!" he added to cheers from supporters.
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WNU Editor: What's my take. The Venezuela government can now screw up two currencies instead of one .... Venezuela’s cryptocurrency plan means it could have two mismanaged currencies (Quartz).
More News On Venezuela Announcing That It Will Launch An Oil-Backed Cryptocurrency
Enter the 'petro': Venezuela to launch oil-backed cryptocurrency -- Reuters
Venezuela to Launch Cryptocurrency to Fight U.S. Sanctions -- VOA
Maduro Announces Creation of the Petro, Venezuela’s Cryptocurrency -- Latin American Herald Tribune
Venezuela to launch ‘Petro’ cryptocurrency to fight Trump’s ‘financial blockade’ -- RT
Venezuela's Petro cryptocurrency tipped as way out of economic crisis -- ZDNet
Venezuelan President Announces Its Digital Currency Is Backed by Oil Reserves -- Futurism
2 comments:
WNU Editor,
This all depends upon one's perspective. If, as the Venezuelan government and many other believe, US sanctions are the cause of what ails Venezuela and not mismanagement on the part of the government, then the crypto currency will beat sanctions and make the Venezuelan economy better.
I tend to agree with what appears to be your assessment of this situation. Mismanagement of the country by the government is the primary cause of what ails Venezuela rather than US sanctions. I might add US sanctions only play a minimal to non existent role in what ails Venezuela. If our "diagnosis" of the disease that affects Venezuela is correct, then the proposed "treatment" of a new crypto currency will not help and as, you put it, the Venezuelan government will now screw up two currencies instead of one.
With regards to US sanctions I would add that they have negative effects for the US that are manifold. 1.)Perhaps worst of all they undermine the US dollar's role as world reserve currency all but ensuring a "hard landing" as opposed to the desired "soft landing" that should be the goal when the inevitable loss of the US dollar in this role does occur. 2.)It provides enemy governments with unearned propaganda victories as they can deflect from their own shortcomings by blaming the US for their problems. 3.)They strengthen the resolve of adversaries and drive the citizens into their arms, thus sanctions prolong the life and staying power of adversaries. 4.)To add insult to injury, they are easily beaten and the elites are never affected.
As such, sanctions should be dropped. Now if Venezuelan government wishes to continuing wrecking their country, they may continue to do so without having the benefit of US sanctions. There is an old adage that goes something like, "when your enemy is destroying himself, get out of his way and allow him to do so." By imposing sanctions the enemy is thrown a lifeline.
Try buying a dozen eggs or a roll of toilet paper with crypto-currency Bolivars - especially if Maduro retains the ability to "print" new ones. Death spirals have a fated direction.
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