Posted on 08/20/2018 10:09:35 AM PDT by NRx
Venezuela is doing something completely unprecedented. Some even say illegal.
As part of an attempt to stop skyrocketing inflation, the country is issuing a new fiat currency called the "sovereign bolivar," which will be backed by a cryptocurrency. But that cryptocurrency, called the "petro," does not trade, and Venezuela's own parliament says it's being illegally used to mortgage the nation's cash-strapped oil reserves.
"This is a smoke-and-mirrors operation typical of Venezuela — I'll believe it when I see it," said Steve Hanke, professor of applied economics at Johns Hopkins University and one of the world's leading experts on hyperinflation. "The problem with the petro is it's a scam, it doesn't even trade."
In February, President Nicolas Maduro unveiled the oil-backed "petro" digital currency as a means to raise cash amid an economic meltdown and economic sanctions. Maduro said each petro token, which is not in circulation yet, would be backed by a barrel of the state's national petroleum. He also said about 100 million petro tokens would be issued — estimated to be worth around $6 billion.
Crypto rating site ICOindex.com, which rates initial coin offerings, labeled the petro "scam status." The site evaluates coins based on their white papers, and said while petro promised to be backed up by oil resources, "the technology and mechanisms to do so are not adequately explained." Another site, ICObench, gives it a 1.6 out of 5 stars.
(Excerpt) Read more at cnbc.com ...
Venezuela will always be a $shithole. I worked down there for several years and their mindset will always demand they remain a $hithole.
All my new ones merely say “THIS NOTE IS LEGAL TENDER FOR ALL DEBTS, PUBLIC AND PRIVATE”
...
And except for the collector’s value of the old one, it’s worth exactly the same.
The paper is a physical representation of an entry on an electronic ledger.
A plastic card with n embedded chip is the access to that ledger and makes the paper dollar obsolete. the crypro currency is also electronic blips that obsoletes the plastic card and provides entry to the ledger via your phone.
In china, the card has been made obsolete by various applications that allow transactions directly between the phone (computer) and the cash register (computer) ledgers. we have some early applications like tht but not nearly so ubiquitous as in china.
I see there’s a phone app now that allows a person to go up to an ATM and have it spit out money from their account.
His REAL name is Nicholas Manure-o.
True.
Twenty years ago some kids broke into a neighbors house and stole his collection.
Ignorant twits spent the money at face value in local stores.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.