Venezuela’s Maduro Forces Banks to Adopt Crypto
If Venezuela is not on your news radar, it should be. The timeline over the last year regarding the government takeover by “President” Maduro is enough to make the average person more than pissed off. Venezuela has one of the largest (if not the largest) oil reserves in the world. The country is somehow experiencing an economic collapse and only putting out 1/3 of the oil it used to. That’s what happens when corruption runs rampant and you put political friends in positions they have no business being in. With oil being Venezuela’s biggest, and for the most part the only source of revenue, it makes you scratch your head as to why the country is starving to death and riots are rampant.
FORCE THE USE
Maduro’s brilliant idea to fix it all? Take billions of dollars in loans from the socialist friendly countries of Russia and China, then create a cryptocurrency backed by Venezuelan oil, the Petro. He didn’t stop there though; Maduro has announced that all Venezuelan banks MUST accept the Petro as a unit of account. Nothing helps along mass adoption like forcing every bank in your country to use it. Petro was unveiled back in December but not without controversy. Maduro claimed to have raised billions of dollars in a pre-sale of Petro, though he hasn’t produced any evidence of this.
TIES TO OIL
Each Petro is backed by a barrel of Venezuelan oil, tied directly to the price of oil. With 100 million Petro, and the average price of Venezuelan’s oil being $60, that leaves the supply of Petro worth $6 Billion. Maduro says they created it in response to sanctions from the US, however, details on Petro are very scarce. The official site, http://petro.gob.ve/index-en.html#home, says the State run crypto had the biggest ICO in history. The details and success of Petro are yet to be seen, but when the government makes the crypto and forces the banks to use it, it’s clear they have left the beaten path of what crypto was created for.
“There is a fine line between patience and laziness. It takes experience and wisdom to know the difference. I would rather jump into something too quickly than miss the opportunity forever” – Me