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Maduro to avoid the financial harassment from US and such has announced a crypto currency for Venezuela. Not exactly sure how this will make it any better then the currency they already have in a free fall. Can release of 'Petro' really help Venezuela?

https://www.reuters.com/article/us-venezuela-economy/enter-the-petro-venezuela-to-launch-oil-backed-cryptocurrency-idUSKBN1DX0SQ

I doubt it can do anything to help. The article doesn't talk about details so it's hard to say...

Help the country? It will be something similar to their current currency, inflationary and with an unrealistic official rate of exchange. People having money will still want to get dollars, euros or bitcoins.

Well, they say criminals, pornographers and drug dealers are always the first to make the use of pioneering technologies so it's a natural fit.

If they get it right they may even be on to something. The world's biggest oil reserves are certainly worth something when it comes to backing.

True but I wonder how this would work out. I mean, is it possible to "cash out" you crypto for oil, gold or diamond. I checked the link and that's what he is promising to back up his coin.

It somehow reminded me that once upon a time, our paper fiat used to be backed by gold.

I feel like this is going to help those who already have power and are corrupt in Venezuela but in no way is this going to help the average citizen there. They don't seem like they are in the people caring business and I doubt this move is any different. It sucks but if I lived there I wouldn't believe or trust this coin and would keep my money in BTC or another altcoin.

I wonder if they will launch and ICO lol. It could work nicely though. Its an experiment for us to see. It might succeed and that would be wonderful for the entire of crypto.

I have heard news related to Venezuela’s move to cryptocurrency after the problem they’re facing economically. It’s hard to tell from now if that works perfectly good to them invidually or a nation. This “Petro” cryptocurrency won’t work if they make they’re own, it is better for them if they do stick to bitcoin.

Good news. Global money start their evolution to cryptomoney. Story about Venezuela's Peter is a good chance to see how it works. I mean, to see how govermental centralized cryptocurrencies work.

Instead of actually gather support from the Venezuelan population they will spend government funds to launch a cryptocurrency? I mean, granted cryptocurrencies are the way of the future, but to be quite honest this isn't something that will help them.

It's interesting, how the other world will work with Venezuela and their crypto. And how the Venezuela's goverment and cityzens gonna use it. But I'm not sure, that Maduro's words become reality.

I really don't understand,  after a huge crackdown on the people who have been mining bitcoins in the country just because they fear that it's going to devalue their currency, I really don't know they are going to launch their very own cryptocurrency,  I am sure other countries are going to start doing the same as well.

Their situation is complicated af. They should develop the whole complex of movements they should perform to liberalize the country (imho thats the only way out for their economy). A free traded cryptocoin might be a good thing (why not? it won't make the things worse) but it won't really help Venezuela.

Unlike bolivar petro won't be able to fall under 1 satoshi  ;D thats an important difference.

Well they do want a break from bank bureaucracy and the paper money and want to free themselves from the financial blockade that they are facing.

Well its backed by the oil and also the government is going to regulate it by establishing a centralized authority to regulate it.

Thus its Centralized and backed up by oil.. 2 reasons that its going to be better than other cryptocurrencies as the government won't allow their value to fall any short.

Well venezuela is famous for the weird things that it did in the past like asking people to eat rabbits ' it has always made bad decisions about their money with oil thus I think this time.. with so mang cryptocurrency in the market they won't be able to.compete with them even after their cryptocurrency has an advantage over others.

Nope. This is just a cover from the economic woes that this country is currently facing. Why not he just step down? Venezuelans had already turn into bitcoin mining as their main source of income and even getting basic needs outside of the country through bitcoin? And every crypto issued by the government didn't succeed because no one want's something that is regulated. Sooner or later their will be no tax exemptions.

Ambiguous decision, how in a poor country will people be credited with crypto currency? How can this really help the economy? It seems to me that Venezuela has run out of paper for printing cash.

Centralized cryptos are bound to fail, let alone a Venezuelan one... In my opinion Maduro & co. don't know the first thing about cryptocurrencies and their economy. They see it as an opportunity to grab some cash, since Bitcoin is very popular in the country after the big failure of the Bolivar, and thanks to the cheap energy. After attempting a crackdown on Bitcoin miners, the government want to join the crypto party but in my opinion they are just going to create more mess.

I doubt that the new "Petro" crypto would help Venezuelan people. It is resource-oriented economy with highly undervalued currency. Some people in Venezuela might pay little amounts with this Petro but there are not conditions for nation wide adoption.  :(

Dollarization is still in the game for such countries.

Even though its chances of not working are high its a good start of conversation on whether govt can succeed in crypto community and whether they will allow decentralization of services leaving them out of the loot of people taxes

In my opinion, I do not think it would help them. But I'm curious what will come of it.

Sure, we cannot say how it is all going to end up, but I would not really have my hopes high in this case. The fact that it is going to end up helping their situation is still based on the government and their transparency and as long as petro is going to be controlled, even though there is no solid information yet, then I would not even bother. It is a good thing anyway that they are considering making use of the blockchain technology to improve their situation.

If that is the main reason why he is going that route, then his advisers are not doing the right thing. It would have been better if he decides to go for bitcoin because to a large extent, bitcoin can be used for international trade but Petro currency would just be like their normal currency which is not accepted in international market and that would still make them come back to the dollars they are running away from. Its either you accept bitcoin and get the benefit or don't but you can get the two.

It highly depends on the features and nature of the coin . If the coin is like paper currency with a full authority of government and imposed taxes then the coin might merely help the government to strenghthen the economy . Without some salient and eye popping features , how will the common people will get attracted and invest on the coin . This is most likely to turn in to a failure if the coin is not attractive and worthy enough.
Every one wants to get  have some unrestricted features when it comes to crypto currency . An authorized crypto currency might be least indulging to the people.                                            

What do you think a guy like Maduro is going to do? It is full blown socialism there. It doesn't matter what the currency is, if they don't let companies thrive and centralize everything, their cryptocurrency is not going to help much when the country is just held hostage of the government's policies. People can hate on Trump all they want but he is cutting a lot of useless regulations that have stalled a lot of growth in the past 8 years, that is what Maduro needs to do, but good luck with that.

Yes, we cannot say how it is all going to end up, but I would not really have my hopes high in this case.
The facts that it is going to end up helping their situation is still based on the government and their transparency and as long as petro is going to be controlled, even though there is no solid information yet, then I would not even bother.

It is a good thing anyway that they are considering making use of the blockchain technology to improve their situation.

There's an angle here which could be emphasized more.

#1 Venezuela used to denominate oil transactions in US dollars.
#2 Venezuela is dropping the dollar in oil transactions in favor of other currencies.

This could be interpreted to mean nations around the world are dropping the US dollar as a medium of making oil transactions for fear that the american federal government will default on its deficit and the dollar will crash.

It is going to end up shitty as ever just like its fiat. Nothing will ever make it change and I am really looking forward to see how it ends up all playing out. Apparently, it would be the same all controlled currency, so he might just as well try to save himself some of the embarrassment now than later on. Only time will tell anyway how it all ends.

We cannot really be too quick to judge but based on the fact that it is still going to end up centralized, one may actually have to question if it would really have any effect in the long run. Time alone will tell us that but I am eager to see the turn of events anyway but I would not be too optimistic.

I believe it's going to go bad, crypto currencies is not the correct way to save a country , because when it used it will create more inflation, a lot of stronger country that had been created their own crypto never suceed yet, so I think it's a bad move, its just the same with adding fiat

How many different coins different countries have announced to attract investors to save their economy. And all as a result ended in failure. It is necessary to think more globally and understand that first of all it is necessary to strengthen the industrial branch in the country and not rush to extremes.

Venezuela itself has a poor and not very modern country but let's say that when this news came out a few days ago I felt a slight surprise but I believe that with this move it can open the eyes of many countries to this new technology, plus the creation of a new model of money will launch an additional capital for the country, because the same is in serious economic crisis, let's see how the story will unfold in the coming days.

Obviously! This is one thing we should expect seeing in the long run where a lot of country will end up coming out with their own cryptocurrency. However, it is still going to end up as centralized as ever and except the corruption does not still get to it, then there is no way it can be of help to their situation right now.

I am sure no government will want to make their cryptocurrency decentralized, so at the end, the rich will still end up benefitting from it.

Venezuela would be better off returning to actual democracy and allowing free market capitalism to save their country's economy. If the currency they claim to be launching is going to be backed by actual reserves, it is just going to fast track the overtaking of the country's wealth by investors because Maduro's leadership is just so incompetent with handling money. This goes against their own supposedely 'socialist' motifs too.

The US will just dismiss this so called "petro" crypto currency that Maduro is planning. Their economy has already collapse and I don't think that help them to overcome the economic blockade that the US (Trump) has imposed on Venezuela. So for me it will not change anything, actually it's much worst than banning bitcoin after all. They even want to used it as leverage and pay other countries with it, but how can the nation accepts this so called crypto? It is still not recognized by other nations, so I don't know how will the Maduro going to used it. There is also the risk of over valuing its petro crypto, which will add up to the current economic situations.

Exactly! The fact remains that it is still going to be the same controlled currency in the crypto form and it won't change anything. Why would anyone even want to hold a coin of a country that has never really done well economically. I still look forward to all the manipulations the government will end up doing with this coin in the long run, so I better just watch the movie than be a part of it.