Bloomberg just announced today that Venezuela will issue cryptodollars whereby each "Petro" (cryptocurrency) will represent one barrel of Venezuela oil.
Combine that with the minimum wage hike projected, it will be only natural to encourage more inflation since cryptocurrency inflates as demand grows.
For a Socialist country, it seems that Maduro envisions the "Petro" and electronic currency as a means of inventing new wealth.
> For a Socialist country, it seems that Maduro envisions the “Petro” and electronic currency as a means of inventing new wealth. <
Even if that really works, it won’t work for long. Like all fascists, socialists love top-down control. Anyone with more than X Petros will be forced to give them up. And anyone with less than X Petros won’t be able to buy anything because of inflation.
High government officials will be exempt from all that, of course.
see #15
Who is going to demand Venezuelan currency?
I would think that deflation more likely in this case.
At least this currency would be tied to a real commodity, oil. If it was actually operated in that fashion it would be real money. A volatile currency however and so not a very good one.
It would be like taking a bunch of oil futures to the store. I don’t see it catching on because who would accept it in trade?
It can be made to, but the whole point of most cryptocurrencies IS A FIXED AND LIMITED SUPPLY.