The Petro: A Cryptocurrency that works in Socialism?

On December 3 of the year 2017 the dictator of Venezuela Nicolás Maduro launches a crypto-named El Petro. What is this launching based on? Under what scheme is it carried out? and What are its characteristics?

The launching of this currency is done under the assumption of avoiding the sanctions imposed by the State Department on the Venezuelan dictatorship. It should be noted that the sanctions imposed are mostly personal, although the sanctions prohibit the purchase of bonds. of Venezuela and the state oil company of Venezuela, SA (PDVSA) with the purpose of generating that the dictatorship does not manage to refinance the debt and continues its oppression to the Venezuelan citizens. The name of this new cryptocurrency obeys an illusion given by the late dictator Hugo Chávez to create a regional currency for Latin America that bears this name.

The scheme used for the implementation of this currency is the technology Blockchain, this technology is based as many know in a database of a large dimension that generates unique chains of blocks with specific position that prevents their modification and allows to generate a sealed link through time in a reliable way, this technology is framed in three fundamental pillars that are the transmission of data, storage of data bases and data formation.
The characteristics of El Petro are a mix between technology and return attempt to centralized systems, the characteristics are the following:

• It is a cryptocurrency that works under the blockchain scheme.
• It is issued by a State through its Central bank.
• Break the decentralized scheme and enter a centralized scheme
• It is backed by mineral reserves and not the trust of the community that holds it.
• Immediate transactions without commissions
• Direct relationship between the owner of the cryptocurrency and the claimant thereof
• It is said that the scheme will seek to control inflation

After clarifying, we make reference to the fact that the Venezuelan dictatorship has not fulfilled its credit obligations and that the Venezuelan legal framework does not allow this digital modena to act as it has been established.

The next article to be published will refer to the regulatory political framework that prevents the launch of this currency.