Washington and legacy media are in a tizzy about Venezuela reportedly thwarting worldwide sanctions by means of a dreaded state-backed cryptocurrency. A more in-depth look reveals a number of obstacles for the Bolivarian Republic: nonexistent reserves, hyperinflation, centralization, and the impossibility of precise redemption. The try will fail, if it’s ever rolled out, including woes to a area stricken by years of financial failure.
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Venezuela’s Desperation Results in Crypto
Rice College’s Francisco Monaldi put it succinctly to International Coverage, “The concept it’s a foreign money backed by reserves is pure fiction. So you’re left with a foreign money issued by a rustic in hyperinflation and in default,” dismissing out of hand the Bolivarian Republic of Venezuela’s try at a state-backed cryptocurrency, the Petromoneda (Petro).
Geographically, Venezuela is the envy of most…