What Could Go Wrong? – Venezuelan Cryptocurrency, el Petro, Pegged to Pension & Salary System
What Could Go Wrong? – Venezuelan Cryptocurrency, el Petro, Pegged to Pension & Salary System by Rory – The Daily Coin
As we have documented, for the past 4 years, Venezuela is an economic disaster. We discuss the reasons for this happening but at the end of the day it doesn’t matter to the people living through this nightmare. Venezuelan President, Nicholas Maduro, has enacted policies of desperation and he has enacted policies that are nothing more than a grab for more power.
The Petro (el Petro) cryptocurrency that was launched in 2017 has gone no where and done nothing for the economy, the nation or the people. If anything it has hurt the country. Now, this maniac wants to tie up even more of the country to a currency that very few other nations can transact – accept or disperse – but it is somehow a good idea to tie the people pensions to a failed currency. What could possibly go wrong?
Here is a report from Coin Desk with more details of this latest over the edge attempt to control an out of control economic meltdown.
Venezuela is set to begin using its “petro” cryptocurrency as an official accounting unit, according to the country’s president.
ABC International reported the development on Tuesday, citing a televised announcement by President Nicolas Maduro, who first unveiled the petro back in December. As part of the change, the state oil and gas company Petróleos de Venezuela (PDVSA) will reportedly begin using thepetro as a mandatory accounting unit.
The moves come as Venezuela’s government seeks to combat growing economic turmoil by relaxing its currency controls, according to an August 7 report from CNBC. On August 20, for example, the government will seek to revalue its currency, the bolivar, and create a “sovereign bolivar.”
In turn, the central bank will begin publishing the price of the sovereign bolivar as it relates to the petro “and the price of the petro according to international currencies,” ABC reports. Similar moves will see the country’s salary and pension systems tied to the petro’s value.
Since its debut, the petro has proven to be highly controversial, drawing attacks from opposition politicians within Venezuela as well as those in the U.S and abroad.
In March, the Trump administration barred U.S. citizens from transacting in the petro as part of a series of new sanctions against the South American country.
Who is going to accept this new bolivar for payment of any goods or services at the global level? Will there be any takers?
Just think if a majority of the citizens had stored gold and/or silver for a number of years and held, for example, 2 ounces of gold and 500 ounces of silver – how much better would their lives be today than the people being enslaved by a maniac who has no clue what he is doing. What you see happening in Venezuela – right now, today – is the result when “you run out of other peoples money” – a.k.a. socialism.