Venezuela releases new petro currency

Venezuela releases new petro currency

It is worth mentioning, that the sanctions, put a year ago by Washington, prohibit US banks and investors from buying just issued Venezuelan debt, in fact, keeping the country out from taking money overseas to bring in new hard currency or refund current economic burden. Or will it turn out to be a South American shitcoin? They will not, however, be able to use Venezuela's currency, the bolivar.

But some analysts see the petro as a desperate move to secure cash amid an unprecedented economic meltdown brought about by Maduro's socialist policies.

Citizens of the crisis-torn nation are struggling to cope with widespread food shortages, the collapse of its traditional currency and hyperinflation - which the International Monetary Fund (IMF) has forecast to hit 13,000 percent in 2018.

Some bitcoin enthusiasts also question the whole concept of Venezuela, or any government, promoting a digital currency when such instruments were originally created to circumvent the controlling role of the state. "In fact, rather than a cryptocurrency it is really an Ethereum-based token like many others we are seeing in the ICO ecosystem".

On February 4, US Secretary of State Rex Tillerson said Washington was weighing sanctions on Venezuela's oil sector to increase pressure on the country's authorities and make them "return to constitutional process". "I am very excited as well as the people of Venezuela", said Maduro. "This is a forward sale of Venezuelan oil", MP Jorge Millan said in a speech, quoted by The Guardian.

"In terms of global investors, there are huge risks because these are barrels [of oil] that are not being developed, at all", Caracas analyst Jean Paul Leidenz tells Otis.

However, that oil has yet to be pumped, says Jose Antonio Gil, a digital currency expert in Caracas.

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To prevent U.S. financial institutions from underwriting Maduro's government, the Trump administration barred lending or any dealings in new bonds and stocks issued by the Venezuelan government and its state oil company.

Other governments are also investigating the cryptographically secured architecture behind digital coins like bitcoin. The dollar enables American governments to exert enormous force and influence without having to fire a missile or write a line of malicious computer code, and getting out from under the dollar has always been a dream for these countries.

Last year, the Economist Intelligence Unit's Democracy Index downgraded Venezuela from a "hybrid regime" to an "authoritarian regime" because it continues to slide toward being a dictatorship.

The future of Petro can hardly be predicted.

Indeed, Maduro has often proven his doubters wrong.

The petro is also supposedly backed by storehouses of gold and diamonds, Maduro has said, according to Bloomberg.

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