Venezuela Launches State Cryptocurrency Sanctions …

Venezuela Launches State Cryptocurrency

The US sanctions imposed on Venezuela in connection with “electoral disruption, media censorship and corruption in government food programs” are having a devastating effect on the South American nation’s economy. In the last month alone, the inflation rate of the bolivar was 57%.

It seems that Venezuelan President Nicolas Maduro has found a way out of this situation. This Sunday he announced his plans to launch a state-owned cryptocurrency. Writes about it Reuters.

“The 21st century has come!” – exclaimed Maduro during the TV broadcast.

The new cryptocurrency will be called “Petro” and will be backed by reserves of natural resources, in particular gold, oil, gas and diamonds. However, while Maduro is in no hurry to devote the public to the logistic details of the upcoming project.

Trump sanctions restrict Venezuela’s access to international bank accounts, as all transactions that may be associated with this state are subject to additional verification, which negatively affects the export opportunities of one of the world’s leaders in oil reserves.

Maduro’s opponents took his statement with a fair amount of skepticism, doubting that Venezuela, mired in economic problems, would be able to launch its own cryptocurrency. They also recalled that the initiative must be approved by Congress before it can talk about its implementation..

Venezuela Launches State Cryptocurrency Sanctions ...

“This Maduro is a clown. His words are untrustworthy, ”said lawyer and economist Angel Alvarado, who does not support the line of the leader of the nation, a former bus driver..

However, if the plan is finally completed, Petro will be the first ever government-issued cryptocurrency. Several countries, including Russia and China, have already put forward such initiatives, but so far these projects are at an embryonic stage. If successful, the Venezuelan experience could be further proof of the superiority of the decentralized monetary system over the traditional.

Photo: Alejandro Solo

Venezuela Launches State Cryptocurrency Sanctions ...

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