- Look out, bitcoin: Venezuela today launched a presale of its state-supported cryptocurrency, the petro, backed by its vast oil reserves, in a controversial offering in which the cash-strapped country is seeking to raise billions of dollars.
- By using a cryptocurrency, Venezuela hopes to attract global investors who would otherwise be blocked from investing in the country by international sanctions, such as those imposed by the Trump administration to curb the country’s access to U.S. debt markets.
- The petro is different from nearly all other cryptocurrencies in that it has the enthusiastic support of the state; Russia reportedly also has considered creating its own cryptocurrency to skirt international sanctions.
- Despite the novelty of Venezuela’s plan, the Peterson Institute of International Economics thinks the country will face a tough road attracting buyers due to the government’s “credibility problem” with global investors: “How can an untrustworthy government with a serious hyperinflation problem issue a backed cryptocurrency? The short answer is: It simply can’t.”
- Related tickers: COIN, RIOT, OSTK, SSC, MARA, UEPS, OTCQX:GBTC, OTC:BITCF, XNET, GROW, OTCPK:BTSC, OTCQB:BTCS, OTCQB:MGTI, OTCPK:BTLLF, SRAX, OTCPK:GAHC, OTC:ARSC, OTCPK:USTC, OTCPK:BLKCF, COINB, LFIN
- Now read: Alternative Money Fund LP Mid-Month Update 2018: -6.58%
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