Venezuela plays at crypto
Crisis-hit Venezuela has decided that tying its economic future to a cryptocurrency is the way to go. With hyper-inflation set to exceed an incredible 1m percent, the government has announced it will be pegging the bolivar to its very own petro cryptocurrency, known as the Petro.
A new ‘sovereign bolivar’ will be tied to the Petro, with each crypto token backed by a barrel of the state’s petroleum assets. The new bills will handily have five zeros fewer than the current bolivar.
But while President Maduro claims to have already raised $735m in an initial coin offering, observers are sceptical that the government has even moved forward on the Petro, with some calling the strategy a scam.