Bitcoin

Venezuela Wants to Create its own Version of Bitcoin

JP Buntinx | December 4, 2017 | 11:00 am
Venezuela Wants to Create its own Version of Bitcoin
Bitcoin

Venezuela Wants to Create its own Version of Bitcoin

JP Buntinx | December 4, 2017 | 11:00 am

Everyone knows Venezuela is not the healthiest country when it comes to finance. After suffering so much hardship, it is evident all traditional solutions won’t suffice. As a result, the government is looking for a new way to bring some more financial stability to this country. Their answer is to create a national digital currency, known as the Petro. An interesting venture that may not necessarily suffice.

Finding a solution to Venezuela’s financial problems will not be easy whatsoever. The country has suffered from many setbacks over the years and things are only getting worse. With the financial blockade by the US in place, things have only gotten even harder. This is why the government of Venezuela wants to create its own digital currency. Unlike the physical Bolivar, however, this new currency will have actual financial backing. It is linked to the country’s oil, gas, gold, and diamond holdings and reserves.

Petro can Become Venezuela’s Bitcoin

In a way, this is the first gold-backed currency we have seen in quite some time. Many people still wrongfully assume fiat currencies have any actual backing, but that is not the case. They were decoupled from the gold value several decades ago. With the Petro, Venezuela takes an interesting approach once again. This new digital currency will certainly ruffle a lot of feathers all over the world, that much is evident.

For the time being, it remains to be seen what the Petro entails exactly. More specifically, there is no technical information, supply details, or release date of this currency. Despite those drawbacks, this currency may succeed, up to a certain level. Without trust, acceptance, and use, there will be very little interest in the Petro, that much is evident. A new currency issued by a struggling nation will not be all that appealing to the masses whatsoever.

How things will play out in Venezuela, remains to be determined. The country direly needs a solution to overcome these issues, but that is much easier said than done. A digital currency may effectively be the answer, but it is doubtful there will be a major success right away. It is not the first time residents will be confronted with digital money, though. Venezuela has become a major Bitcoin hub throughout the years. Which of these two currencies will have more success, remains to be determined.

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  • Bob Donovitch

    Last dying gasps of a dying dictatorship. First the Vens themselves would have to be willing to accept it. I don’t see this happening with all the hostilities currently dealt to those who simply attempt mining BTC.

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