The Venezuela Petro CryptoCurrency’s Short Life Span

Former Venezuela Presidential Chief of Staff Beatrice Rangel on Venezuela's latest crackpot idea: the PetroMoneda, a cryptocurrency supposedly backed by oil that is neither crypto, neither currency nor backed by anything except the same government that has brought 2800% inflation and 100,000% devaluation to existing currency the bolivar. How much do you want to buy?

As Venezuela’s President Maduro tries once again yet another gimmick to distract the world from his ongoing policy-made-humanitarian-crisis, he seems to ignore that crypto currencies can become the accusation ledger for his judgment by an international court.

Indeed, Venezuela is about to launch the Petro which, to my mind, is yet another means to perpetuate secret transaction with the world’s bad boys club. But that was before I had to attend a tech conference for unaware baby boomers on investment strategies which included how to become a billionaire by using crypto currencies.

And as I understood the lessons, you could perhaps enter into shady transactions using cryptocurrencies in so far as they do not involve blockchain.

Cryptocurrencies are mostly tied to bitcoin and bitcoin to blockchain and that blockchain is the most effective vehicle for transparency. How come? Because blockchain is a non-corruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.

Information held on a blockchain exists as a shared — and continually reconciled — database.

The blockchain database isn’t stored in any single location. Records kept by blockchain are public and easily verifiable. So anyone including you and me could go through this ledger and learn how much Venezuela spends on lobbyists in Washington to protect their business allies from being reached by U.S. imposed sanctions; which electoral campaigns the Bolivarian regime is financing throughout Latin America; when and where transactions accruing from illicit activities take place. In short, Preet Bharara’s case building dream.

Yet another unforeseen hurdle by President Maduro is the fact that the Petro already has competition.

To be sure, in December 2017 a group of very distinguished bankers and US regulators teamed to launch the OilCoin, which is the world’s first regulatory compliant cryptocurrency backed by a physical asset: oil reserves.

And while Venezuela reportedly has the largest oil reserves in the world, getting to those reserves entails dealing with a government that upholds policies for about five days when thinking long term.

Suffice it will be to bring to the record the three banking laws published last summer, and all revoked by the currently exiled Attorney General. In short, the Petro like every other Bolivarian gimmick seems to be poised for a very short life.

Published by on Monday february 5th, 2018

*The opinions published herein are the sole responsibility of its author.*