Venezuela becomes the first country to peg their currency to a Cryptocurrency pegged to the value of 1 barrel of oil
This is really a surprise... Venezuela backs their new currency to their Crypto-Token Petro which is supposedly accepted by PDVSA the national oil company for buying one barrel of oil.
A huge move... the problem is that the visibility of the Petro has been absolutely ZERO. Because of the US-sanctions nobody in the world is allowed to buy it if they do not want to be sanctioned themselves. One move as I see it in avoiding this trap that no exchange outside Venezuela wanted to let it trade, was the introduction of 15 local crypto exchanges authorized to trade the Petro. But where are they?? As far as I know even coinmarketcap does not mention them. If someone has a link to one of those exchanges please post it in the comments below.
The other thing is: will the holders of the bolivar be able to trade in all of their bolivars to petros and exchange them for oil? I have strong doubts that the paper bolivars will be printed limitless like before the old "new Bolivar" and find the same fate if the government does not ensure convertibility to Oil.
If Venezuela really exchanges 3600 Sovereign Bolivars to a barrel of Oil than my analysis of this situation would be:
The Venezuelan government will have to stop overspending and would need to live within their means (tax revenues). Having a totally destroyed economy this will not be much... they are between a rock and a hard place... if they do not pay all of their government employees and military, they will get thrown out of office.
They would have to privatize and deregulate the whole economy therefor and let it restructure. I think their government might not survive this. But if they do, with private crypto exchanges and PDVSA backing indirectly the Petro, establishing as a hard currency, that country might get back to be a very prosper country. They could even privatize the oil sector again, so that PDVSA would get competition and just be a company backing the Petro.
I doubt that the government of Venezuela makes this a success... they have so far failed in each step they have taken towards marketing the Petro and privatizing and deregulating the economy. I think they will just go on like this and not make advertisements of their crypto exchanges and so on... they could have done this a long time ago... How much can it cost to have their exchanges listed in coinmarketcap... together with the petro... Perhaps they had their lives threatened and did not dare to give it a public start... or they just are stupid... I do not know...