Venezuela’s crypto play will be fascinating to watch, but feels doomed — Daily Crypto Links — 1/4/18
Amid an economic crisis, ordinary Venezuelans have turned in large numbers to cryptocurrency. So has president Nicolas Maduro’s government.
As the country edges closer to launching Petro, its own crypto coin backed by Venezuela’s vast oil reserves, its people are apparently chomping at the bit to begin mining. Many true believers have suggested that crypto could bring lasting positive financial effects to people in developing countries. Unfortunately, this may not be the proof they’re looking for.
Oil prices are scuffling and Venezuela is suffering from sanctions imposed by the US. Petro will effectively be tied directly to the lifeblood of Venezuelan economy. It will lack the decentralized nature of more established cryptos such as Bitcoin and, like the bolivar, will still be a measuring stick for the badly mismanaged Venezuelan economy. That doesn’t seem likely to improve just because Maduro wants to get into crypto.
It will be a captivating case to follow, but unfortunately it looks like a longshot to improve the lives of the Venezuelan people.
- Venezuelans sign up in huge numbers to mine state-run crypto — (Bitcoinist)
- Indian government think tank will test blockchain in an effort to confuse the shit out of people — (CoinDesk)
- Merrill Lynch, shattering irony scale, bans clients from investing in Bitcoin— (CoinDesk)
- BBVA is tinkering with Stellar and Ethereum, not just Ripple — (finder.com.au)
- Blockchain could do some very cool things for the entertainment industry — (Forbes)
