Will Venezuela be able to solve part of its economic problems by introducing this new cryptocurrency, the petro?
No. Neither the crypto nor the likes of it won’t address the crisis in Veniz at the moment. All it needs the remedial measure from the administrator that could restore the stability in the zooming hyperinflation plagued the state’s economy. Crypto may seem alluring to certain parts of the world but it’s detrimental drug to the crisis-ridden countries and going for such odd tool is total weird!
If we are talking about the introduction of cryptocurrency on a national scale, then this will be useful only for the purpose of getting rid of corruption. The technology of blockchain will change the world, but not now. Now, this is only a good tool for customer service, but no more. For example, modern online casinos (like a playtech review) use this to expand the reach of customers and allow the client to simplify the rules for entering the game, since he does not need to enter his personal data, but only the purse number of the cryptocurrency.
You already have enough reasons to believe that it won’t solve any of it’s economic problems from the answers before, but more than that, it is more likely to maintain a favorable context for hyperinflation another method of using coruption etc.
Now, another reason is that, nowadays, people of Venezuela do not recognize their currency anymore. they are trading on the black market ( as it was in the past) service for service, product for product, which makes the currency lose even more power. In this context, a cryptocurrency owned by the state would have :
a) lack of investment/tranzactions because of the bad image that the state has .( investors and clients are more likely to avoid states that may look strange)
b) Internally, people will refuse to use the cryptocurrency from the same reason that I’ve written previously, it is more suitable for them to exchange products and services than using a currency that suffers of “inflation” and a cryptocurrency that suffers of “lack of investment”. They prefer to create their own price standards(almost like in an economic anarchy).
To conclude it, a cryptocurrency owned by the government of Venezia would do more harm than good to it’s economic system that is already damaged enough. ?
