Venezuela surprises the world with it's own crypto!
Venezuela known for being one of the countries with the most natural resources and it's deluding president Maduro surprises the world today. It will be mining its own cryptocurrency. And it will be called Petro.
A statement from bitcoin.com "The Venezuelan government has published a decree outlining the operation of Venezuela’s national cryptocurrency, the Petro. It details the government’s plans for the new currency, including its issuance, mining, and trading. In addition, the Petro will be backed by 5 billion barrels of crude oil."
5 billion barrels of oil and later deposits of gold & diamonds will back the currency. In this paper there are 13 articles.
We know a couple things right now and that it hints at an ICO, let's just hope for the people of Venezuela that their new money will be more worth then bitcoin. Other information can be found in article 9 of the document Article 9, “The custody will be decentralized once the Superintendence of the crypto-assets and related Venezuelan activities has carried out the initial auction and assigned the crypto-assets to investors.”
So what do you think, will this save the economy? Or just be a measurement out pure hype and desperation?
I actually made a video on this in the past, outlining why it likely won't work.
First of all, any oil and mining deposits backing it are still in the ground. The value of the currency is dependent on the workers and government to extract them, despite being on the verge of bankruptcy and revolt.
Additionally, I don't trust Maduro and his regime. Partly it's because of their socialist politics, but there are few if any governments that can be trusted with this.
Finally, the whole reason that assets like gold are valuable, is not only because of their industrial uses. They also act as a store of value because of their rarity and the resources (labor, time, energy) that went into finding, mining, refining, and minting the bars. In this case, that value has not been added to the resources that remain in the ground.
I have about the same thoughts on it. But i didnt want to lock the discussion down on this right away. However crypto is a great means of speculation so who knows despite all the odds.
Where can i find your video?
It should be a post of mine in the last week, titled "a gold and oil backed crypto".
We need this actions from certain governments to test and prove it's possible. My main issue is if they will have an unlimited supply of coins, or just whatever from the physical world they can have to back up in the virtual world
With this government that is a hardcase besides we are seeing the botten or the oil pit.
I think this will be the easiest way for them to launder money
Im pretty sure a state doesnt really have to launder money. However the case for Venezuela is not a good one.