Venezuela, Maduro binds the Bolivar to the Petro

Venezuela, Maduro binds the Bolivar to the Petro. Here are the latest moves (thrilling) of the American country in excellent monetary terms…

Do you remember the idea of Venezuela to create a new cryptocurrency? Well, the project continues even if - analysts note - there is the paradox of the president's will Maduro to find one's only hope for stability in something notoriously unstable like one criptovaluta.

According to a focus by Bloomberg, the Venezuelan president Nicolas Maduro it has announced its intention to tie a new national currency, the Bolivar, to one criptovaluta of his government, the Petro. It is the first case in the world of a government that ties its economic fortunes so tightly to those of a digital currency, thus suggesting a possible way out for a country devastated by hyperinflation. But is it really so?

In fact, the hyperinflation expert and economics professor Steve hanke he told CNBC that the PEM token based on the NEM blockchain will probably not be a magical remedy for Venezuela's ills. "This is a smoky operation, typical of Venezuela - I will believe it when I see it," he said - "The problem with Petro is that it is a scam, it is not even exchangeable".

The Petro should apparently be supported by the Petroleum, even if this element is strongly questioned by international analysts. "It's basically backed up out of nowhere," Russ Dallen said in March. "People believe that it is supported by oil, but if you read the contract, in reality it is not" - he specified.

Either way, buying the Petro will be almost impossible. In some countries (such as the USA) the purchase of digital currency has been prohibited. It seems unlikely that these bans will be reviewed in the short run and ... in the long run.

In short, in a nutshell, what he did Maduro is to devalue the Venezuelan Bolivar by 96 percent, and then tie it to the cryptocurrency Petro. Petro, meanwhile, is a token allegedly backed by oil, but which everyone outside of Venezuela considers a scam. Not really a straight way to get out of trouble ...