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This Country Adopts Virtual Currency

It used to sound crazy that a nation can run on a cryptocurrency. Not anymore. Venezuela has adopted a virtual currency as it battles with severe economic crises. The new currency will be backed by oil, gas, gold and diamond wealth. Go figure!

Venezuelan President Nicolas Maduro has announced the creation of a new virtual currency in a bid to ease the country's economic crisis.

He said the Petro would be backed by Venezuela's oil, gas, gold and diamond wealth.

[...]

In a televised announcement on Sunday, Mr Maduro said the new crypto-currency would allow Venezuela "to advance in issues of monetary sovereignty, to make financial transactions and overcome the financial blockade".

"The 21st Century has arrived!" he added to cheers from supporters.

Indeed, the 21st century has arrived and any country can run its own currency, sequestered from the world.  Is that the vision for the future? Every city with its own currency?

I do not like how Venezuela is doing it by linking it to minearals. There is a better way for a country to do this with the authority of the central bank as I have presented here. Yet, you may not blame Venezuela as they do not have any reliable currency. So, the oil and diamond may be a better idea. (The politician did not provide details on the structure, and when the currency would be launched).

 

Venezuela is more or less a failed state at the moment. Moduro has lost, so it's a question of trying out everything, to see if his government can get handle on how to move the country forward.