NEWS Venezuela plans to create a cryptocurrency Central Bank

[alexeycmexa]

The national Assembly of Venezuela is preparing a reform of the country's Constitution, which provides for the creation of a crypto-currency Central Bank. It will be “the Central Bank" with its functions in exchange, monetary and financial policy, and the Central Bank will be involved.  In Venezuela, from August 20, a new denominated currency will enter into circulation — the Sovereign Bolivar (Bolivar Soberano), tied to the national crypto currency Petro. On Monday, the country's President Nicolas Maduro (Nicolás Maduro) said that the country will begin to operate a new system of wages and prices, also tied to Petro.

[blueteam09]

The national Assembly of Venezuela is preparing a reform of the country's Constitution, which provides for the creation of a crypto-currency Central Bank. It will be “the Central Bank" with its functions in exchange, monetary and financial policy, and the Central Bank will be involved.  In Venezuela, from August 20, a new denominated currency will enter into circulation — the Sovereign Bolivar (Bolivar Soberano), tied to the national crypto currency Petro. On Monday, the country's President Nicolas Maduro (Nicolás Maduro) said that the country will begin to operate a new system of wages and prices, also tied to Petro.

Venezuela is in great debt, making the country's economy so badly inflationary. Venezuela establishes cryptocurrency bank will change the current of the country? They need to take better measures instead of releasing their own Crypto.

[stompix]

On Monday, the country's President Nicolas Maduro (Nicolás Maduro) said that the country will begin to operate a new system of wages and prices, also tied to Petro.

A new system of wages and prices....much wow.
We had the Bolivar which was a reflection of the Venezuelan economy and backed mostly by oil and now we have this petro which is totally backed by oil and another currency, the Sovereign Bolivar that will be pegged to the petro.

Now, I don't see any reason why since the first thing in this chain is worthless the other two won't be just as worthless.

This whole smoke show will just benefit Maduro and his cronies helping them stash some more millions away like Chavez did and the people in Venezuela will wonder why the sovereign bolivar who is supposed to be 1000x move valuable buys them just a single loaf of bread like the normal bolivar.

[so98nn]

The national Assembly of Venezuela is preparing a reform of the country's Constitution, which provides for the creation of a crypto-currency Central Bank. It will be “the Central Bank" with its functions in exchange, monetary and financial policy, and the Central Bank will be involved.  In Venezuela, from August 20, a new denominated currency will enter into circulation — the Sovereign Bolivar (Bolivar Soberano), tied to the national crypto currency Petro. On Monday, the country's President Nicolas Maduro (Nicolás Maduro) said that the country will begin to operate a new system of wages and prices, also tied to Petro.

I'm afraid this move might just backfire for both Venezuela and cryptocurrencies in general. Launching your own crypto, to salvage your crippled economy does not seem a very sound measure.
Secondly other developed countries, might just see this as a dirty trick to by pass trade laws, thus damaging bitcoin's image.

[senin]

Who would not say anything here, but what President Maduro in Venezuela is doing will be a good experience for this country and for the whole of the crypto currency. This is practically the only country where the economy is being reformed under the national currency of El Petro.

[bitbunnny]

Unfortunately Venezuela has so bad economic and social situation so I don't see that their own cryptocurrency could help them to solve this.
It's more likely that the aim of this crypto will be some kind of self promotion of president Maduro and some attempt to show the rest of the world how progressive he is. But this will not work.

[Evil eye]

If Venezuela create a crypto central bank so it will very good news for Venezuelan people.Venezuela will grow their economy from crypto. Venezuelan crypto traders are being happy for this decision. Venezuelan people can exchange their crypto very easy from the bank. I'm also be happy for this reason. speacial thanks President Nicolas Maduro for this good decision.

[domasal]

This is great news for crypto, and the Venezuelan people. Their economy is crashing and the people need something that is decentralised away from government control. Although petro is from the government, they are welcoming crypto and their people can diversify their portfolio with privacy coins

[Horace_Damico]

The national Assembly of Venezuela is preparing a reform of the country's Constitution, which provides for the creation of a crypto-currency Central Bank. It will be “the Central Bank" with its functions in exchange, monetary and financial policy, and the Central Bank will be involved.  In Venezuela, from August 20, a new denominated currency will enter into circulation — the Sovereign Bolivar (Bolivar Soberano), tied to the national crypto currency Petro. On Monday, the country's President Nicolas Maduro (Nicolás Maduro) said that the country will begin to operate a new system of wages and prices, also tied to Petro.

I'm afraid this move might just backfire for both Venezuela and cryptocurrencies in general. Launching your own crypto, to salvage your crippled economy does not seem a very sound measure.
Secondly other developed countries, might just see this as a dirty trick to by pass trade laws, thus damaging bitcoin's image.

Yeah the IMF might look at this as an attempt to walk out on their debt. I guarantee someone will come in and clamp down on it somehow. Maybe they'll establish a form of tracking system for transactions.

What if Venezuela is a test pilot for the world economy? A crash dummy to see how hard it is to destroy an economy with hyperinflation and massive amounts of debt before "rescuing" it with a new form of currency... one that will, of course, be closely monitored by the government and strictly prohibit any "leakage" in the form of unclaimed income.

This could be the next step towards tighter monetary controls. We have it quite easy right now if you think of it, and the old weapons of devaluation and inflation don't seem to be working so well for governments.

[jwcastle]

Riiiiiiiight! And look how well the Venezuelans are doing with their regular banks right now. LOL

Maybe they are just looking for a way to get their out of control inflation down from the stratosphere. After all, they can't use paper money any more. It'll take a suitcase filled with fiats to buy milk and bread. It's either electronic payment or go full swing into crypto. Good luck to them.

[lolland]

If they make an open crypto currency, then they highest likely also make a public block explore for all transactions, and then everyone can daily see  have many new coins are added to the blockchain, then we can each day see how fast the inflations goes in Venezuela.

[stompix]

What if Venezuela is a test pilot for the world economy? A crash dummy to see how hard it is to destroy an economy with hyperinflation and massive amounts of debt before "rescuing" it with a new form of currency... one that will, of course, be closely monitored by the government and strictly prohibit any "leakage" in the form of unclaimed income.

Yeah, but this test would be void if the dummy is already blown apart at a molecular level.

They could have done this monitoring by simply taking out the paper bills and running on plastic cards. Those would be far easier to implement and get used by the average Joe.

This is great news for crypto, and the Venezuelan people. Their economy is crashing and the people need something that is decentralised away from government control. Although petro is from the government, they are welcoming crypto and their people can diversify their portfolio with privacy coins

Which you acknowledge the petro is not, but you still think is good for the people although this is not what they need. You've made your shitpost, are you happy?

Unfortunately Venezuela has so bad economic and social situation so I don't see that their own cryptocurrency could help them to solve this.
It's more likely that the aim of this crypto will be some kind of self promotion of president Maduro and some attempt to show the rest of the world how progressive he is. But this will not work.

And is not going to help them!!!!
You can't just change your currency and somehow out of the blue jobs appear, the infrastructure is rebuilt and so on.

Look at East Germany, it's been 30 years, it was a country far better than most of the eastern block and although it has united with the west and became a global power, there are still differences.
30 years have not been able to balance and bring the two regions at the same level.
Venezuela has almost a century to come back from!

Those that think adopting a crypto will solve everything are either naive or high on something

[avikz]

The national Assembly of Venezuela is preparing a reform of the country's Constitution, which provides for the creation of a crypto-currency Central Bank. It will be “the Central Bank" with its functions in exchange, monetary and financial policy, and the Central Bank will be involved.  In Venezuela, from August 20, a new denominated currency will enter into circulation — the Sovereign Bolivar (Bolivar Soberano), tied to the national crypto currency Petro. On Monday, the country's President Nicolas Maduro (Nicolás Maduro) said that the country will begin to operate a new system of wages and prices, also tied to Petro.

The economy of Venezuela has failed to great extent. Despite having the largest petroleum reserve of the world, their President had failed the nation with few thousand percent of inflation rate. That is the reason why it is seeking options to get a solid ground.

Noth8ng much to cheer as if now but if the Bolivar and the national crypto bank of Venezuela can help the economy to reduce the inflation rate, then it will be an interested and strong use case for the rest of the world! But looking at Maduro's history, the chances look grim!

[Fineyokoma]

I think that crypto can help these poor countries a lot to make their economics more stable. For example Binance made an exchange for Uganda because they understand the importance of thiw question

[hase0278]

Yeah, but this test would be void if the dummy is already blown apart at a molecular level.

Maybe they were already observing Venezuelan economy silently long before it was blown apart. If they are then this test would not be void since they have already gathered a lot of useful data.

I think that crypto can help these poor countries a lot to make their economics more stable.

Believe me it won't. Cryptocurreny and bitcoin cannot help a poor country pay out a debt unless it is helping them gather a hefty sum of money from taxes of many crypto dealings.

[Yantoaja]

Venezuela has been dealing with an ever-increasing inflation rate, which according to Bloomberg's Cafe con Leche Index is now seeing one cup of coffee cost 2 million bolivars, up from 2300 in th past 12months. The government's moves are presumably being made to hinder its inflation's growth.
The cryptocurrency is seen as a way for the country to draw in foreign investments and bypass international sanctions.

[mirawantirinjana]

Unfortunately Venezuela has so bad economic and social situation so I don't see that their own cryptocurrency could help them to solve this.
It's more likely that the aim of this crypto will be some kind of self promotion of president Maduro and some attempt to show the rest of the world how progressive he is. But this will not work.

I was very surprised by this news, I also knew that the state of the economy in the country's economy would not be able to make a cryptocurrency bank.
they are too pushy.

[KingScorpio]

What if Venezuela is a test pilot for the world economy? A crash dummy to see how hard it is to destroy an economy with hyperinflation and massive amounts of debt before "rescuing" it with a new form of currency... one that will, of course, be closely monitored by the government and strictly prohibit any "leakage" in the form of unclaimed income.

Yeah, but this test would be void if the dummy is already blown apart at a molecular level.

They could have done this monitoring by simply taking out the paper bills and running on plastic cards. Those would be far easier to implement and get used by the average Joe.

This is great news for crypto, and the Venezuelan people. Their economy is crashing and the people need something that is decentralised away from government control. Although petro is from the government, they are welcoming crypto and their people can diversify their portfolio with privacy coins

Which you acknowledge the petro is not, but you still think is good for the people although this is not what they need. You've made your shitpost, are you happy?

Unfortunately Venezuela has so bad economic and social situation so I don't see that their own cryptocurrency could help them to solve this.
It's more likely that the aim of this crypto will be some kind of self promotion of president Maduro and some attempt to show the rest of the world how progressive he is. But this will not work.

And is not going to help them!!!!
You can't just change your currency and somehow out of the blue jobs appear, the infrastructure is rebuilt and so on.

Look at East Germany, it's been 30 years, it was a country far better than most of the eastern block and although it has united with the west and became a global power, there are still differences.
30 years have not been able to balance and bring the two regions at the same level.
Venezuela has almost a century to come back from!

Those that think adopting a crypto will solve everything are either naive or high on something

capitalism will turn venezuela even further down, there are by now many countries that can economically much weaker because they left socialism. and turned to a chaotic and selfgreedy capitalism.

the problem is that this "cryptocurrency" bank will ultimately create just an elite that will try to centre the countries economy towards themselves and their benefit like the bitcoin lambo miners are already doing.

there is no point of trusting it. it will lie to the people and it will try to abuse them. and with loss of infrastructure venezuelans will become less educated. less lingually unified. and much more chaotic and diverse.

[pooya87]

i can't tell whether this is going to end well for Venezuelan government or make things worse. so far they have literary printed a lot of money (Petro) out of thin air and have been "selling" it and making money and with things like this bank/exchange they are making more money but all of this has introduced people more and more to decentralized bitcoin which they also happen to be using now and becoming less reliant on their national currency and corrupted in debt economy.

[stompix]

Yeah, but this test would be void if the dummy is already blown apart at a molecular level.

Maybe they were already observing Venezuelan economy silently long before it was blown apart. If they are then this test would not be void since they have already gathered a lot of useful data.

The conspiracy theory proposed was saying that they would experiment on how a crypto would influence a falling country. So based on that, the experiment is void if the country is blown apart before you manage to introduce a cryptocurrency

capitalism will turn venezuela even further down, there are by now many countries that can economically much weaker because they left socialism. and turned to a chaotic and selfgreedy capitalism.

So you're saying a lot of socialist states are now worse than before because they applied a policy of chaotic capitalism and this is the capitalism fault.
It's like blaming a chainsaw for malfunctioning after you put maple syrup in the tank.

I come from a former communist/ socialist country, we were so poor everything was in rations, we had power 2/3 of the day, hot water was a miracle beyond the 6th floor....
Please, don't even try to compare real socialism with capitalism, go in a country and experience socialism for 20 years and then talk about it.