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Venezuela Says Its Cryptocurrency Raised $735 Million -- But It's a Farce (arstechnica.com)

Posted by msmash on from the closer-look dept.

Earlier this week, Venezuelan President Nicolas Maduro claimed that a new state-sponsored cryptocurrency called the petro raised $735 million on the first day of its sale. ArsTechnica dives deep on the matter to suggest that it's all a farce. From the report: The government hasn't provided any way to independently verify that $735 million figure. And there's reason to doubt almost everything the Venezuelan government has said about the project. Moreover, there's little reason to believe that the petro will maintain its value over time. The Venezuelan government has portrayed petro tokens as backed by Venezuela's vast oil reserves, but they're not. The government is merely promising to accept tax payments in petros at a government-determined exchange rate linked to oil prices. Given the Venezuelan government's history of manipulating exchange rates, experts say investors should be wary of this arrangement. Moreover, the petro scheme has been opposed by opposition legislators in Venezuela's opposition-controlled legislature. They say that the Maduro government is essentially issuing oil-backed debt, and legally that can't be done without approval from the legislature. If Maduro falls from power in the future, his successor might refuse to honor petro redemptions.

5 of 89 comments (clear)

  1. There's little reason to believe the Venezuelan... by Attila+Dimedici · · Score: 4, Insightful

    government.

    The summary says there is reason to doubt what the Venezuelan government has said about the 'petro". Well, of course there is. There is reason to doubt anything said by the Venezuelan government.

    --
    The truth is that all men having power ought to be mistrusted. James Madison
  2. do you want americans to liberate your country? by nimbius · · Score: 1, Insightful

    because trading oil on a market other than the US Dollar is an excellent way to experience sudden and unexpected violently American Freedom(c) and Democracy(c) in your country. https://www.theguardian.com/wo...

    --
    Good people go to bed earlier.
    1. Re:do you want americans to liberate your country? by quicks0rt · · Score: 2, Insightful

      Oil was not the sole reason, but a largest contributer. To say otherwise is to turn a blind eye on motivations behind military-industrial complex.

      https://www.cnn.com/2013/03/19...
      https://www.theguardian.com/en...
      http://www.washingtonsblog.com...

      By your logic since Iraq was next door to Iran for invading Iraq, we should invade Kazakhstan(or any neighboring state) and China to engage future warfare with Russia and North Korea, respectively? Why not invade Iran directly instead of surrounding it? Also, since Pakistan is also a border state, what's your excuse for leaving that one behind? You know, the one that provided harbor for Bin Laden?

      And guess who's the biggest sponsor of terrorism now - Saudi Arabia - but we are allies with them?
      https://www.huffingtonpost.com...
      https://www.newsbud.com/2017/0...
      https://www.salon.com/2016/01/...
      http://www.newsweek.com/why-sa...

      You see, we see it as what it is. A complete bullshit by neocons running the White House.

  3. Re:There's little reason to believe the Venezuelan by CrimsonAvenger · · Score: 4, Insightful

    There is reason to doubt anything said by the Venezuelan government.

    There is reason to doubt anything said by ANY government.

    Fixed that for you....

    --

    "I do not agree with what you say, but I will defend to the death your right to say it"
  4. Re:WTF?!?!! Venezuela is a "progressive" hell-hole by Anonymous Coward · · Score: 0, Insightful

    You think these anti-American socialist governments fail all on their own? They are targeted and attacked relentlessly by the CIA, the UN, the World Bank, the IMF etc. etc. etc..