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

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.

Comments

Re:Commies are bad with money? Who knew?

[bobbied]

The US, where you can send your daughter to UNC Chapel Hill and she gets killed by scum who rode the bus over from Durham.

You see, things are not much different in REAL LIFE, son.

Bad things happen everywhere and the USA is no exception. All senseless killing is to be condemned.. However..

In Venezuela, senseless killing is a lot more common these days, as is politically motivated shooting of opposition candidates. Venezuela has never been the paragon of safety, but there isn't a place in the USA which is as dangerous as walking down the street in Caracas these days. These people have NO food, medical care or prospects for finding any. The government is literally controlling EVERYTHING and is likely getting set to default on their latest loan payments so they will have nothing to give to the population. Desperate hungry people are fighting to survive, bloody violence is the way this kind of thing goes, if history is any indicator.

RDU isn't a perfect place but it's a lot less risky than Caracas as RDU isn't full of hungry desperate people with no prospects.