Venezuela’s Own Bitcoin, The Petro, Hitting A Cyber Café Near You

Seeking Alpha (USA) – I have read many articles on this specific announcement and I realize that it was a few days ago, but most of the information I have read has been simple fake news and mis-information. Let’s clear something up, first, the crypto currency is not meant to directly make the country richer in anyway, they are not going to start selling cryptocats to the world, etc. If you recall in August of this year, President Trump took what he called “swift economic action” on Venezuela and initiated further sanctions. As a punishment for Maduro undermining the countries democracy, US regulated institutions are banned from trading Venezuelan debt products.

This has crippled the country, as it is broke and cannot afford to pay for services, trade, etc outright and has been issuing Venezuelan bonds instead as payment. The bonds (the promise of the govt) of course backed by the fact that the country is so rich in natural resources. They plan to back the crypto currency the same way, I suppose redeemable for a certain unit of natural resources. How this will all work has yet to be announced.

The Petro would allow Venezuela to transact with US regulated intuitions therefore allowing it some semblance of economic sovereignty. Since the sanctions, the country has been transacting mostly in Yuan and Rubbles, as these are the largest purchasers of their debt or bonds. In addition, the US has sanctioned certain Venezuelan political figures as well. An international digital currency; while it will still be a process for these people to get to where they once were, will enable them to make transactions without Washington looking over their shoulders.

Fuente: Seeking Alpha – 06/12/2017

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