Venezuela's New Cryptocurrency Plans

Venezuela said to be implementing a new cryptocurrency backed by oil, gold in temper tantrum aimed at US and its sanctions. How realistic is this? 

 

 

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I saw the announcement but there is no detailed explanation how are they planning to implement it. How are they going to impose control on in is hard to foresee. I mean, cryptocurrency is meant to be decentralized and stateless assets NOT controlled by central banks

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More like bankrupt-currency

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Yes, there are too many unknowns. How are they planning to link the currency to hard asset? Would holders of Petro be able to redeem it into oil or even gold maybe?... While people of Venezuela are struggling to meet basic needs, I don’t see any good of digital currency

 

 

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Backing the government-sponsored cryptocurrency is no guarantee of value either because the Maduro regime can alter the formula at any time. And I am not sure Venezuelan government, poised by financial mismanagement and corruption, is the best for this venture 

 

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If the move is going to bypass the U.S.-led financial sanctions and help Venezuelans, I am for it. But I think the money will end up in elites pockets

 

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70 years ago, Venezuela with GDP per capita was (today sounds strange and unbelievable) more developed than China. Compared with 1950, the GDP for Venezuela was $7,424. In the same time, China was on 45th place with $614... At that moment Venezuela was the world's 4th richest economy ... Socialism, communism, corruption - all together or just one of the above has brought the country to the edge of bankruptcy.

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I  would rather say that oil and democracy have come to them...

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