Can Cryptocurrency Save Venezuela?

Venezuela is on the verge of bankruptcy. The Venezuelan government is trying to save the country's economy with a virtual currency.
tirto.id - Issuing bonds in times of crisis? Owe to international institutions? That might be a crisis settlement in a country in the old days. Nowadays, there is another option that is utilizing blockchain to get fresh funding and get out of the crisis.

Venezuela, has announced it will publish petro cryptocurrency. According to Reuters, Venezuelan President Nicolas Maduro said his government had secured $ 735 billion on the first pre-sale day of the virtual currency last week. He acknowledged, the proceeds from the sale of cryptocurrency will be used to save Venezuela's economic difficulties.

Maduro is very hopeful, with the issuance of the virtual currency, Venezuela can get out of the crisis. The country is indeed hit by a severe crisis. The bolivar currency has fallen and reached its nadir. High inflation makes the economy of the socialist country in a sad state.

Nevertheless, blockchain experts claim that petro cryptocurrency is less attractive to investors. The most opposition legislators, rejecting the issuance of the cyptocurrency. Opposition leaders say the sale is illegal because it is tantamount to owing without a strong legal basis.

The US government even threatened to add sanctions to Venezuela. The US government has imposed sanctions in the form of a ban on all banks and investors to buy new debt from Venezuela. This is done so that Venezuela can not borrow funds from abroad to obtain fresh funds or to refinance its current debt.

"Based on existing information, once issued, petro will look like an extension of credit from the Venezuelan government," a statement from the US Treasury told Reuters.

When claimed to have obtained funds from investors in the initial sale, Maduro did not mention who investors are already interested and committed to buy the virtual money. He just said, someday, deals in the tourist sector, some gasoline and oil sales may use petro cryptocurrency.

The Maduro government has already launched its official page on petro cryptocurrency. Inside the page, there are a few hints on how to get the virtual currency as well as how to create an electronic wallet. According to the plan, petro cryptocurrency will be launched next month.

Petro cryptocurrency will be issued as many as 100 million tokens with a value of more than 6 billion US dollars. However, until pre-sale yesterday there has been no official price of the token. Maduro explained, the price of the virtual currency will use the price of Venezuela's crude oil as a reference.

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Can Cryptocurrency Save Venezuela?
Reporter: Yan Chandra
February 26, 2018
Can Cryptocurrency Save Venezuela?
Venezuela is on the verge of bankruptcy. The Venezuelan government is trying to save the country's economy with a virtual currency.

tirto.id - Issuing bonds in times of crisis? Owe to international institutions? That might be a crisis settlement in a country in the old days. Nowadays, there is another option that is utilizing blockchain to get fresh funding and get out of the crisis.

Venezuela, has announced it will publish petro cryptocurrency. According to Reuters, Venezuelan President Nicolas Maduro said his government had secured $ 735 billion on the first pre-sale day of the virtual currency last week. He acknowledged, the proceeds from the sale of cryptocurrency will be used to save Venezuela's economic difficulties.

Maduro is very hopeful, with the issuance of the virtual currency, Venezuela can get out of the crisis. The country is indeed hit by a severe crisis. The bolivar currency has fallen and reached its nadir. High inflation makes the economy of the socialist country in a sad state.

Read also: Venezuela Threatened Crisis of Humanity

Nevertheless, blockchain experts claim that petro cryptocurrency is less attractive to investors. The most opposition legislators, rejecting the issuance of the cyptocurrency. Opposition leaders say the sale is illegal because it is tantamount to owing without a strong legal basis.

The US government even threatened to add sanctions to Venezuela. The US government has imposed sanctions in the form of a ban on all banks and investors to buy new debt from Venezuela. This is done so that Venezuela can not borrow funds from abroad to obtain fresh funds or to refinance its current debt.

"Based on existing information, once issued, petro will look like an extension of credit from the Venezuelan government," a statement from the US Treasury told Reuters.

When claimed to have obtained funds from investors in the initial sale, Maduro did not mention who investors are already interested and committed to buy the virtual money. He just said, someday, deals in the tourist sector, some gasoline and oil sales may use petro cryptocurrency.

The Maduro government has already launched its official page on petro cryptocurrency. Inside the page, there are a few hints on how to get the virtual currency as well as how to create an electronic wallet. According to the plan, petro cryptocurrency will be launched next month.

Petro cryptocurrency will be issued as many as 100 million tokens with a value of more than 6 billion US dollars. However, until pre-sale yesterday there has been no official price of the token. Maduro explained, the price of the virtual currency will use the price of Venezuela's crude oil as a reference.

Venezuelan Infographics Merana

Petro cryptocurrency is the first government-issued digital currency. On the official government page on the issuance of the currency, there is a warning to its users about the security of electronic wallets used to store the investors' digital assets. Maklumlah, has several times occurred piercing digital wallet by the cyber robbers. There are also details on how the token works, but there is no explanation of how the government plans to publish the new token.

There are some changes to the issuance of this virtual currency. Initially, the petro token will be part of the existing token network that is ethereum and will follow the ECR20 standard. However, according to the government's explanation, it is not done.

Description on the page says the petro token will work on the NEM network. Blockchain NEM was launched in 2015. To date there are at least 500 billion dollars of cryptocurrency stolen from the Coinchek platform in January. In the explanation to the buyers mentioned that the electronic wallet and other programs related to technology on the platform. It seems not yet clear why there are differences in the plan. It could be that petro will be developed on the NEM network, then it will be combined with the ERC20 network after the sale goes. Alternatively, Venezuela will use derivative code from XEM to be listed on the new ledger.

There are several things to be observed after Venezuela announces the sale of the token. From the page on petro, Venezuela plans to create a cryptocurrency exchange next month, when token sales begin. The government is also still going.

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