Venezuela to create Oil-back National Cryptocurrency "the Petro"
As many of you are already aware, the people of Venezuela are suffering from one of the worst hyperinflations of the decade, their national currency, the bolivar, has lost over 1000x its value in 3 years dragging down the country's monthly minimum wage to $4,30. Its annual inflation rate is expected to surpass 2300 % next year. The citizens have been struggling for a long time to afford food at their dinner table and many are relying on Bitcoin mining and trading as a way to avoid starvation.
Here on Steem we also have many Venezuelans and the post rewards they are able to earn here have surely been a blessing to many. Compared to recent Bitcoin transaction costs which themselves could provide food for days to its people, Steem has offered no transaction costs to their Venezuelan users. Its only a matter of time until more Venezuelans start accepting Steem and Steem backed Dollars as a payment method to remove all unnecessary fees converting to BTC or transacting with it.
The president of Venzuela, Nicolás Maduro announced on Sunday that his country plans to create a national cryptocurrency called "the Petro". It will be backed by oil, gold, gas and diamond reserves. Quote from the President:
I want to announce that Venezuela is going to implement a new cryptocurrency system based on oil reserves, in order to advance in the area of monetary sovereignty. This will allow us to move towards new forms of international financing for the economic and social development of the country.
Video of the announcement in Spanish:
Many dislike the idea due to doubts that Venezuela can't "pull off" the launch of a cryptocurrency and stating that the president has no credibility.
If this will happen or not is too early to tell, but I don't think it will hurt trying it out as long as the currency remains open-source and public as most blockchain technologies. Even if it never were to happen it will at least introduce more people to cryptocurrencies in general and anyone is welcomed to use and benefit from Bitcoin or a more cheaper currency to use, Steem.
What are your thoughts about this? Do we have any Venezuelans who can input some more info on this or share their thoughts about it?
Hello @acidyo Venezuelan here! Coincidentally I wrote a bit about this, I'm still learning about crypto, but with the little I know I'd say this is an unexpected move by the goverment, I'm still skeptical because our goverment has the reputation of lying to the people. I do believe this could be a game changer for our economy. I'm working behind the scenes with some Venezuelan Steemians in a big community project , a Steemit Academy, this news probably might help us get in more people easily and why not? attract future investors. Cheers!
Venezuelan here and I want to add that I don't think a government ran cryptocurrency will fix this, especially if it's maduro getting it started. It's a scary thought. I'm skeptic like you for the same reasons.
However; I would much rather see more Venezuelans adopt bitcoin, steemit and other cryptocurrencies. I am not currently residing in Venezuela, but I see you are working behind the scenes with some Venezualen steemians. I would like to help in some way if you will have me. I currently have family in Venezuela and I plan on telling them more about steemit asap. I feel like this could be an experiment. If Venezuela succeeds, other countries will do the same, and we might end up with a crypto-dollar here in the US before it's all said in done
Exactly bro! I've realized that most people have really good intentions but nobody is doing anything! I'm pretty confident we could succeed if we educate people good enough about this, and that's what our academy will do. Cheers!
I wanted to help my family in Venezuela but being in the USA I read I could get in trouble for helping a sanctioned country. Isn't that f'd up? Not sure how true this is.
Hello @bitfiend, my friend, you are misunderstanding thinking that you can't help your family due to those sanctions, you'll have trouble just if you make any business or transaction or contract with anyone on the blacklist that are specified by the government of the USA, that sanctions are just for that people. You must not be afraid to help your family or friends, that's not a crime.
Thanks for your reassurance, I understand now.
Really fucked up in case this was true! If you want to help your family you could encourage them to come to Steem, you transfer them SBD or Steem and they could trade them easily using a service. Don't know if you've noticed but there are services here in Steemit where people can change Steem to VEF
After doing some digging, most of my family doesnt own a computer, one of them just had a phone die and finding a replacement is next to impossible. So how would I get them connected? There is a huge gap of communication because even access to wifi is hard to come by. Maybe you can run this by your group and get ideas? Is there a discord? They are pretty computer illiterate so probably not something they'd want to do. All the more reason to get the petro going.
I just wrote about this this morning as well, and in my opinion, people like this Venezuelan president guy only ever do things for themselves, and sadly, I believe this "Petro" coin is another one of those things:
https://steemit.com/cryptocurrency/@tolkatore/venezuela-to-issue-their-own-oil-backed-cryptocurrency-would-you-trust-it
I'm gonna quote this from Acydo's post "I don't think it will hurt trying it out as long as the currency remains open-source and public as most blockchain technologies" If they decide it to do it this way, maybe, just maybe, things might turn around. From the goverment nothing really surprises me, believe me, we have seen it all, all they can do just to keep staying in the power.
I doubt it, but it will most likely resemble the Chinese coin they are coming out with, which will most likely be private, secretive, and completely traceable.
I am Venezuelan, I can assure you, that this project is to be able to steal without leaving a trace. Those who govern my beautiful country today, are a band of communist thieves. we are living many hardships because of them. They are shameless. but I believe in God and his justice.
@marsella-2017 That was my thinking it looks for me more like a project to fill the pockets of the people upstairs since when they care for the people downstairs. I am very sad for you and the people in Venezuela. I can feel with you guys because I am living in a country ( Mauritius) which has a high political corruption as well and that's why I am leaving next year and go back in my home country (Germany). The Government in Mauritius is telling the world that they are a democratic country but they are not the country is run by a dictatorship. For example after the last election the new prime minister did his job for 6 month and after that he gave his position to his son normally there should be a new election but not here in Mauritius WTF this is no democracy. There is much more going on here and I will do a post about it when I am out of here not that I get problems and end up in jail.
Stay strong and as you say we need to believe in God and his justice.
LOVE&LIGHT for you and all the good people in Venezuela.
This comment fills me with a lot of hope. I would like to join you in my list of friends. It is a pleasure to know that we are feeling the same, and that we can not change anything, we can only contribute with a grain of sand to see smiles on the faces of less fortunate people.
I have a great friend in Switzerland who has been encouraging me a lot. and he has shown his love for me and my family, we only have 3 months being friends and he has helped me as if he were my older brother.
Due to the situation, part of my family has emigrated to other countries. my brother Pedro, went to live in Spain, my brother Demis, went to Peru.
I stay strong, I have to help my parents. who are here with me
steemit has helped me to meet fantastic people who bring new ideas, and little by little we are moving forward.
I follow you from this moment. I hope to know more about you.
Thanks for you kind words you also have me ass a follower now :)))
I am glad to here that you take care of your parents and that you are moving forward it is a pleasure to meet you. Yes Swiss people are nice I been there a few times for winter vacation. Spain is nice as well have a lot of friends from there been there as well a few times for vacation and meeting my friends and Peru is great too had my best experience there doing a lot of ayahuasca ceremonies i was living there for a few month in Iquitos.
Now you know a bit more about me c ya later :))))
Alright, thanks for the information. That is sad to hear if its just going to be another "money grab" where the citizens are the ones to suffer from the most.
Blockchain comes in many forms and can be used in many ways, it's sad to see it being abused like this.
Blockchain (as a technology) cannot be abused @acidyo. Only the term “blockchain” can be abused. If they make a centralized platform calling it falsely “blockchain”, it will not be abuse of technology, but an ordinary scam. If the platform is really blockchain technology, then “money grab” is excluded.
It is a good analogy. but I understand that blockchain technology is a double-edged sword, like many other things, it would all be a matter of deciding how to use it.
Actually @marsella-2017, blockchain technology is a double-edged sword only for those who try to misuse it. It's an open ledger. It can't be forged. So, it forces governments to play completely honest game (in which case they loose control over their decentralized coin), or complete fraud (by lying their coin is blockchain). But lie is not sustainable because the centralized coin will be immediately targeted not only by hackers, but also foreign intelligence services.
I understand the point. but those people have stolen so much money from our country, they need to back it up in a cryptocurrency. to leave no trace of the money they have stolen. No names will appear here.
and past cases where the government of the United States has frozen millionaire accounts to public officials of this disgusting communist revolution.
Just please @marsella-2017, take care when you talk about the “good deeds” of US government against the “disgusting regimes”. Just remember Libya (they also had a “disgusting regime” and lots of oil) and see how does it look today…
And as far as US government is concerned, try follow @dollarvigilante:
https://steemit.com/bitcoin/@dollarvigilante/a-letter-to-the-irs-go-fuck-yourselves-you-bunch-of-criminals
https://steemit.com/bitcoin/@dollarvigilante/joseph-stiglitz-calls-for-the-use-of-violence-against-peaceful-bitcoin-users-on-state-propaganda-tv
I only talk about what I see in my country. I do not like to talk about a country I do not know. In my country the rulers have an internal currency blockade. we do not have access to the dollar in the exchange house.
On the other hand they have accounts in Andorra and other foreign countries, they have taken our money elsewhere and the people here are going hungry. If want I can send you documented material of what is happening in my country.
I agree with pretty much all you said, but also it is in our hands to change the way we live, how? I'm very certain that you and I live a little "better" than most of our people, therefore WE have a commitment with our country, we need to teach our people how they can generate income using Steemit for example, we cannot sit here just to cry, whine and complain, we need to take things by our hand and actually start doing something.
Excellent friend, it seems that there are connected thoughts I do not want to spam, but it is necessary that you see these publications and we talk about a project on how to move forward and help others.
https://steemit.com/christianity/@marsella-2017/sharing-with-old-hilario-part-2
https://steemit.com/christianity/@marsella-2017/sharing-with-old-hilario-part-1
https://steemit.com/story/@marsella-2017/communism-vs-capitalism-a-real-story
Es una buena idea, hablar con amigos sobre steemit para que generen activos y asi ayudar al país solo no es la queja hay que hacer una buena acción.
eso es correcto mi amigo.
I agree the government will just continue to screw the people. Welcome to Communism.
I think the decision wether to welcome or recline cryptocurrency will be a major factor into how the future for all countries look.
I think this could be a good way to create a new start for Venezuela, because too many have lost hope in the Bolivar, and as we all know fiat currency is mainly backed by belief, so once that's gone...
This is indeed interesting and backing this crypto with oil gold and gas can indeed be successful
I don't know backed by oil, gold, gas and diamonds sounds for me backed by the finance elite and they don't have good things in there minds. Lets just see how this will play out but for sure I keep an eye on it. It is a very nice gesture from Steem to offer no transaction costs for the Venezuelan users wow that makes me very happy and proud to be a part of this awesome platform and community.
I hope and pray the project " PEDRO"plays well out for Venezuela!!!
LOVE&LIGHT
This just shows the potential power of blockchain. I know that the one leading our Fantasy is from Venezuela. It could be interesting hearing his view on this.
Awesome article as always! I quite enjoy following the progress of crypto as it makes its inevitable plunge into the masses ;)
Yep, seems mainstream adoption is lurking around the corner.
I believe that ultimately due to automation and unemployment this platform will explode as an alternative source of income. No matter the risks it entails people would choose it. Behavioural economics has changed conventional economic activity.
The way the crypto world making inroads everywhere is crazy.
Well we were talking about the same issue with @dontstopmenow few days ago not the crypto launch but the economic situation I couldn't beleive the monthly wages when I first heard about them. It is quite cruel how economy works.
or doesn't work in their case.
Exciting to see countries adopt cryptocurrencies! Wonder how this will play out in the long run for venezuela. Hopefully they will be able to overcome their problems
What happens if they do manage to pull it off?
who knows, perhaps they will be a beacon of the coming changes of world economies.