Will Venezuela be able to solve part of its economic problems by introducing this new cryptocurrency, the petro?
Short answer: No, it won’t.
Long answer: The problems with the Venezuelan economy go beyond the solution of the introduction of a parallel currency, as a matter of fact, the emergence of this cryptocurrency (and other parallel currencies such as the “panal” used in some rural areas) is due the hyperinflation. The bureaucracy, inefficiency and corruption of the Venezuelan economic system dooms petro’s future as a viable way to fight hyperinflation and it’s most likely a scheme from the government to laundry money.
No, it won’t.
The main problem with the venezuelan economy is the lack of production mixed with inefficiency and corruption of the Venezuelan economic system. The goverment trusted the entire economy on the oil production and exportation and their are not longer producing anything else. Everything that comes into the country is imported which helps a lot to the hyperinflation problem.
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. ?
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.
