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After the blockchain-based Crypto Petro Dollar, the Venezuelan government probably has a new idea to get foreign currency into the country. It wants to set up and build up a central bank for cryptocurrencies. Another crazy idea or does the idea have potential?

For more details read  this article (https://www.ccn.com/venezuela-looking-to-launch-a-central-bank-for-cryptocurrencies/) on CCN.

Excerpt from ccn dot com:


Politicians won't stop being funny.
The government is basically trying to Centralize Cryptocurrencies it wishes to control.
It is probably an attempt to get rid of transparency and other important features of decentralized Cryptocurrency in order to manipulate the Cryptocurrencies as they wish and possibly destroy them like the national fiat that currently has no value.

Not necessarily,Venezuela is known for it's current inflation crisis.It may be just a legit step to fight against their problem by generalizing the use of cryptocurrencies.I mean,yeah it may destroy decentralization at some point,but they don't have much of choice actually.

As far as I know, unfortunately in the current moment of time Venezuela is in a deep hole I mean that the economic situation in the country are awful. I read some articles about Venezuela and how I understood Venezuela faced with much economic and financial troubles. I suppose that ideas and the statement about having an intention of founding the central bank for cryptocurrencies  is an attempt to change the situation in the better way. I am absolutely sure that the officials have made a research about the benefits of founding the central crypto bank and, of course, there are the objective reasons this bank will be helpful for solving various troubles. By the way I also remember that Iran intended to start using the national cryptocurrency.
Anyway I consider that this news are very positive for us and for the entire crypto market because not only retail and institutional investors invest in the crypto technologies but even some countries are ready to begin using cryptocurrencies. It is very good because any additional attention is useful because it attracts new traders, investors, developers and so on.

But is there any information about the destiny of the Petro? What is happening with that Petro? Where is it traded? What is it used for? How has bought it?

They just keep coming up with awful ideas which will most likely end up being failures. First, the Petro, a cryptocurrency that no one uses, has no legitimacy, and was clasified as a "scam" by a lot crypto sites ^[1], and now a central back for cryptos? Terrible idea.

Do you even need to ask that question?

A country that's going through its worst economic crisis in its history, with a dictatoship that doesn't care the hyperinflation might reach 1 million percent by the of the year ^[2], wants to create a central bank for cryptocurrencies (which is the last thing cryptos want, a central bank system) because the govt wants to have more control over its citizens...No, I don't think this idea has potential.

Tbh, a central back for cryptos is the last thing the citizens of Venezuela need, they need food, electricty, medicines, etc.

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1. https://www.bloomberg.com/news/articles/2018-04-03/crypto-rating-sites-are-already-calling-venezuela-s-petro-a-scam 
2. https://www.theguardian.com/world/2018/jul/24/venezuela-inflation-million-percent-imf-warning

What potential does this have?

At best, this is just going to be one of countless other government plans to centrally control cryptocurrency issuance within their country. Basically, it's fiat 2.0, and instead of it being printed on paper, it's just going to be stored, operated, and managed by the government on a blockchain. Essentially even more control over the economy and money supply by the Venezuelan government.

I don't see this as beneficial to any individuals or citizens of Veenzuela or other countries. Petro was pretty much only to the benefit of the Venezuelan government to collect investments, and get foreign currency in. This central bank is probably just to maintain official control over Petro or whatever else they've got in the future. No point whatsoever.

The government of Venezuela is really desperate, that is what that news is really telling me, they have lost control of their economy and their country which was once beautiful and gorgeous and like always inept politicians have transformed a country with incredible natural resources in a wasteland, it is a shame but let it be a reminder that the capitalist system that so many like to ridicule is the only one that works, it is not perfect and it has flaws as well but it is what we have.

Ah,if only those fuckers understand this. A central bank for cryptocurrencies. There is so much irony in that statement. And this "Central Bank" would probably be much worse than bittrex and poloniex combined  ::), know what I mean?

But Venezuela is going to benefit from this stupid Central Bank, at least monetarily.

Since a lot of people are living off crypto, Venezuela thinks an economy that is drowning on its own, can survive. Not only do they need basic necessities, they need to bring down the inflation and give some value to its own economy.

Building a central bank for crypto is a great idea and we need to have more creative new ideas, if that is done will make the crypto market more active.Venezuela Wants to Launch a Central Bank for Cryptocurrencies so wonderful

Indeed!They never stop to think they are smartest beings in this universe.

i dont think cryptocurrencies should have a physical central bank, lots of abuse and centralisation can happen there.

in the end they want to obtain the power to legalise illegalise currencies, like the federal reserve in the usa does.

regards

It will just beat the decentralized nature of cryptocurrency as the centralized bank that they would create would only want to take control of the they assets that is pouring into the bank that they want to build and if you say bank it really quite different but if the Venezuelan goverment would create a blockchain instead of a bank then that is a different subject to argue.

Do not know this information should be happy or sad. Do not understand what their intentions are for the market. Maybe this is an opportunity for everyone and also their chance. The purpose of taking over the whole market is quite possible. However, changing a pre-existing system is very difficult and not practical.

Oh man. 

Saddam wants to sell oil for Euro. 
Ghadafi wants to sell oil for gold dinar

I hope Venezuela is ready for when the big boy throws a tantrum.  Bad things happen to those who buck the USD when it pertains to oil.

In this case I do not really think that nothing needs to be done, the Venezuelan governments is sitting in a house of cards that will soon collapse, and it is likely its own people are going to be the ones to overthrow the government, the interesting part is going to be what it is the next step from Venezuela and what they are going to do to rebuild their country? Since their international reputation and creditworthiness are ruined.

Government backed cryptocurrencies will hardly see the light of day. This is because they would want to be in control, thus manipulating everything about it including the price like they do with their respective fiats. Governments should rather focus on adopting the blockchain technology in handing select aspects of their national life, rather than a ridiculous thing like a Central Bank for cryptocurrencies and the likes.

A Central Bank for Cryptocurrencies is a joke by definition!
The characteristic of the crypto coins is decentralization, if there is a central control they are no longer crypto coins!

These banks still have something that is not sympathetic. Feeling the presence of electronic money makes them uncomfortable. Stop losing good food. May be showing bad thoughts. Not sympathetic to this community.

I really love the idea of the Venezuelan Government. As for me, I welcome any good news that has to do with cryptocurrency especially when it comes to government's support. Things like this will make crypto stronger.

I wonder how this will run. This is okay for me as long as people there gets help from their inflation.

This is a very good news for cryptocurrency. It will surely boost the market confidence if it succeeds.

This is a very good news. I wish every other country will be as supportive of cryptocurrency like Venezuela is currently doing.

Regardless the pros and Contra of building and establish a central Bank of Cryptocurrency, thes all are as the impact of the growth and development of Cryptocurrencies. The idea or plan to build a Bank is probably should be decided and taken by the government of Venezuela. I am as one of the users of Cryptocurrencies who are out of Venezuela just want to see how the policies regulate Cryptocurrencies. 

a bold breakthrough because it has been supported by the law of the country, the idea is bold so that the economy continues to develop all for the welfare of the people.

I do not have much capacity to comment and say anything about it. I just want to see how the regulation of the Central Bank of Cryptocurrencs established by the Venezuela works. As we know Crypto is decentralize framework,everyone is free to get in. Through this regulation doses it still work the same or has  difference or even better than now. 

the very essence of cryptocurrencies are they are decentralized in nature, if anyone tries to make it centralized in any way will kill the system, one cryptos are manipulated, it will be like fiats, one become centralized, monopoly takes place. it cannot be done and should not be push through, if it does, then fiats and cryptos will not be different with one another. yeah, this is one hell of a crazy idea, clearly an FUD move.

I think the government already run out of idea, actually its a bad idea to launch such a thing, crypto can be a temporary solution to save the economic but in long term there will be a lot of controversy thing, and central bank for crypto is bad idea, but I am curious about the result, this can be a reference for other country government observations

The government in Venezuela are as corrupt and incompetent as they get. The fact that they are involved in crypto is not a good thing in total for the crypto community, they are a laughing stock and giving the entire ecosystem a bad reputation.

Im not familiar with the country and its current economical status, but based on what everyone is saying, that Venezuela had an economic crisis. Well, based on the fact that this certain country is currently facing, building a central bank doesnt directly benifit the people but the government will be the first hand, as they are just trying to control everything in terms of financial assets, while putting ridiculous transaction fees and taxes in cryptocurrency.

this news  can be affected in market positively.and we hope this action followed by another country such as korea , japan or maybe china.of this country do the same with venezuela i am sure cryptocurrency will recovered soon.

Its good news that there is a country that really into cryptocurrency, but have you read about venezuela fiat down to 96% its down really bad and i hope venezuella going to be okay right now.

I think it's just an almost failed, corrupt and  dictator government trying to get money keep their power on.

Not only being funny but  desperation also,i dont know whats this venezuelan president has in his mind to make this crazy decisions and mind thinking..i know how he wanted to make grow hes country but not in this kind of foolish ideas,because this may bring hes government drown forever if this fails

This is their last attempt, grasping at straws. They've kind of backed themselves into a corner with the hyperinflation as money can't hold the value of the paper it's being printed on anymore. Is it necessarily a bad thing though? I'd say it's a step forward because they are moving crypto into the mainstream.

However, the centralized nature of it will be a signal to other countries as well: we can still control our money even if it is digital. You'll probably see Sweden or Norway try something similar next.

This is where the market is heading. Crypto is becoming controlled by the banks.

I'm more than positive that this idea will not gonna push thru.
Crypto is not meant to be centralized and for so long, that kind of freedom is enjoyed by crypto enthusiasts and the likes.
This is not the solution to what is happening with their economic situation.
This will just pave the way of getting money from crypto users, in which, beforehand, crypto is free from taxes and other charges.
Remember that the corruption in Venezuela is high by world standards. They can think of better solution other than tapping the crypto community.

https://en.wikipedia.org/wiki/Corruption_in_Venezuela (https://en.wikipedia.org/wiki/Corruption_in_Venezuela)
https://www.businessinsider.com/corruption-at-venezuelan-oil-company-is-worsening-the-economic-crisis-2018-4
 (https://www.businessinsider.com/corruption-at-venezuelan-oil-company-is-worsening-the-economic-crisis-2018-4)

Venezuela is in despair, the people do not have food, and soon a revolt will break out, much more serious than the disorders that have existed to date.
The announcement of the creation of a local cryptocurrency is just an attempt to raise some money.

The situation in Venezuela is very difficult, even if it is not mentioned in the Western media. The government has many faults, but the country has been shamed in a shameful way. However, the attempt to create a centralized cryptocurrency does not make sense and is doomed to fail.

Let that be a warning, it is impossible to build a socialist country that works, eventually the governments impulsing such policies are going to run out of money, while capitalism has many flaws as well at least it is a system that can last for a very long time because it goes according to human nature, if I can keep most of the profits out of my productive activity then I have a desire to work harder but if the government does then what it is the point of working hard?

Just as according to your inference. This action of them this time. Probably this is, the probe of electronic money market. That may be the beginning of the upcoming campaigns of banks. Especially the World Bank. Maybe they are watching us to act their own purpose. Be careful investors!

This is a very welcome development coming from the Venezuelan government. I really applaud them for having such great faith and confidence in cryptocurrency.

Venezuela is in hyperinflation currently and their fiat currency has little value. The policies of the central bank and Venezuela government did not help as they were printing more and more currencies leading to higher inflation. I agree that cryptocurrency might help in their present situation

Those people have not really an idea of how money works, I have heard some people saying that the government should give one million dollars to everyone that way everyone will be a millionaire, and I find surprising that many people agree with that kind of thinking they do not see the huge amount of inflation that will cause and if that happened then one million dollars will not buy what it buys today.

After all, this is good news and I hope this will be able to boost the price of crypto and bitcoin to become expensive again, the actions of the Venezuelan government should be thumbs up, because we can provide regulations that cover transactions using crypto currencies.

If this one will happen it is a good news for the people who used in bitcoin in Venezuela since their transaction will be much easier and the government has a good regulation since they approved it. It can help their economy to gain more investor and to have more income. It is a win-win situation for everyone.

I have mix emotions with this one. What's the use of a Central Bank for Crypto? Crypto is supposed to be decentralized, they should just put proper regulations and then everything will be a OK.

Venezuela government is somewhat a bonderline case, they have their own government back coins, which is shady to begin with because we don't know who invested on them (ehem... Russia) and it was pretty obvious that they created it to circumvent any trade restrictions coming from the West.

If they wanted to adopt bitcoin and other cryptos, for me regulations will be enough. Perhaps they wanted to have control of crypto's thats why they are thinking of launching a Central Bank which doesn't makes any sense at all.

yes, i think it is more good for us to safe our cryptos in our own wallet, with out any interruption from the third party

I think that is a very good step and hopefully this good news can affect the conditions of other cryptocurrency prices and can provide benefits for traders.

Is it any different to the group (whatever the group name is called, I don't know) that is currently controlling the Petro at the moment?

According the the article, it just seems like that this central bank is simply going to be another version of the organization currently managing the country's national cryptocurrency, as the proposed central bank's main focus is obviously to try to market and regulate Petro.

This really has no "potential" to speak of. It's not a decentralized cryptocurrency, nor is it global, nor is it supported by any other government around the world. I honestly don't see anything remotely intriguing here, other than the fact that it's designed to help the Venezuelan government bypass sanctions and promote capital inflow.

this issue is quite shocking to the world, maybe there is no other option for Venezuela to get out of its economic crisis all this time, because the Bolivar as its national currency is worthless, just imagine you have to pay a few million bolivars to buy a cup of coffee, this doesn't make sense .
but I've heard the news that now Venezuela has issued a new national currency by eliminating some zero digits behind the value of money, I think this method is quite unique but invites pros and cons.

i read there is idea to use dash as currency  to help them from inflation. It might turn oug great on future but right now its crazy movement but i think it would be great idea cause seems like there is no other way.

I'll second this it keeps getting worst and worst for them, there was no clarity in launching and running petro, and it was only a matter of time before it was dubbed scam. I am surprised they're focusing on launching a central bank for cryptos, when their top priority should be tackling the menace of inflation, at this current rate they're looking for a total economic disaster, and recovering from it might be really difficult. I see no merit in this idea, hopefully they won't pursue it.

Well keeping in mind the current worst financial crisis Venezuela is passing through, I feel it is a do or die condition for the country to pass through the situation.

Besides, opening a central bank for cryptocurrency will be a good idea because majority of the people in Venezuela are using mobile money and many the cryptocurrency so it is the need of the day and a policy built around the cryptocurrency will be worth implementing for the country to come out of the crisis.

wrong time to adopt right technology only make the technology a tool of destruction.

After unsuccessfull on petro coin, maybe venezuela want try different way. I think it will not success again like what happen in petro because investor must be worry about country condition

What you are saying doesn't make sense, cryptocurrencies were created to avoid the regulation of the governments, why do you think that we should be happy that the Venezuelan government is creating their own central bank? We know this is nothing more but an attempt to keep their government in place and they are using cryptocurrencies as a way to try to do that.

This is a very bold policy of the Venezuelan government to change the economy of the country. The widespread use of crypto in the whole country will create great confidence for people in practical application. I hope that with the breakthrough of Venezuela will change the current difficulties.