As many of you are already aware, the people of Venezuela are suffering from one of the worst hyperinflations of the decade, their national currency, the bolivar, has lost over 1000x its value in 3 years dragging down the country's monthly minimum wage to $4,30. Its annual inflation rate is expected to surpass 2300 % next year. The citizens have been struggling for a long time to afford food at their dinner table and many are relying on Bitcoin mining and trading as a way to avoid starvation.
Here on Steem we also have many Venezuelans and the post rewards they are able to earn here have surely been a blessing to many. Compared to recent Bitcoin transaction costs which themselves could provide food for days to its people, Steem has offered no transaction costs to their Venezuelan users. Its only a matter of time until more Venezuelans start accepting Steem and Steem backed Dollars as a payment method to remove all unnecessary fees converting to BTC or transacting with it.
The president of Venzuela, Nicolás Maduro announced on Sunday that his country plans to create a national cryptocurrency called "the Petro". It will be backed by oil, gold, gas and diamond reserves. Quote from the President:
I want to announce that Venezuela is going to implement a new cryptocurrency system based on oil reserves, in order to advance in the area of monetary sovereignty. This will allow us to move towards new forms of international financing for the economic and social development of the country.
Video of the announcement in Spanish:
Many dislike the idea due to doubts that Venezuela can't "pull off" the launch of a cryptocurrency and stating that the president has no credibility.
If this will happen or not is too early to tell, but I don't think it will hurt trying it out as long as the currency remains open-source and public as most blockchain technologies. Even if it never were to happen it will at least introduce more people to cryptocurrencies in general and anyone is welcomed to use and benefit from Bitcoin or a more cheaper currency to use, Steem.
What are your thoughts about this? Do we have any Venezuelans who can input some more info on this or share their thoughts about it?
Hello @acidyo Venezuelan here! Coincidentally I wrote a bit about this, I'm still learning about crypto, but with the little I know I'd say this is an unexpected move by the goverment, I'm still skeptical because our goverment has the reputation of lying to the people. I do believe this could be a game changer for our economy. I'm working behind the scenes with some Venezuelan Steemians in a big community project , a Steemit Academy, this news probably might help us get in more people easily and why not? attract future investors. Cheers!
Venezuelan here and I want to add that I don't think a government ran cryptocurrency will fix this, especially if it's maduro getting it started. It's a scary thought. I'm skeptic like you for the same reasons.
However; I would much rather see more Venezuelans adopt bitcoin, steemit and other cryptocurrencies. I am not currently residing in Venezuela, but I see you are working behind the scenes with some Venezualen steemians. I would like to help in some way if you will have me. I currently have family in Venezuela and I plan on telling them more about steemit asap. I feel like this could be an experiment. If Venezuela succeeds, other countries will do the same, and we might end up with a crypto-dollar here in the US before it's all said in done
Exactly bro! I've realized that most people have really good intentions but nobody is doing anything! I'm pretty confident we could succeed if we educate people good enough about this, and that's what our academy will do. Cheers!
I wanted to help my family in Venezuela but being in the USA I read I could get in trouble for helping a sanctioned country. Isn't that f'd up? Not sure how true this is.
Hello @bitfiend, my friend, you are misunderstanding thinking that you can't help your family due to those sanctions, you'll have trouble just if you make any business or transaction or contract with anyone on the blacklist that are specified by the government of the USA, that sanctions are just for that people. You must not be afraid to help your family or friends, that's not a crime.
Thanks for your reassurance, I understand now.
Really fucked up in case this was true! If you want to help your family you could encourage them to come to Steem, you transfer them SBD or Steem and they could trade them easily using a service. Don't know if you've noticed but there are services here in Steemit where people can change Steem to VEF
After doing some digging, most of my family doesnt own a computer, one of them just had a phone die and finding a replacement is next to impossible. So how would I get them connected? There is a huge gap of communication because even access to wifi is hard to come by. Maybe you can run this by your group and get ideas? Is there a discord? They are pretty computer illiterate so probably not something they'd want to do. All the more reason to get the petro going.
I just wrote about this this morning as well, and in my opinion, people like this Venezuelan president guy only ever do things for themselves, and sadly, I believe this "Petro" coin is another one of those things:
https://steemit.com/cryptocurrency/@tolkatore/venezuela-to-issue-their-own-oil-backed-cryptocurrency-would-you-trust-it
I'm gonna quote this from Acydo's post "I don't think it will hurt trying it out as long as the currency remains open-source and public as most blockchain technologies" If they decide it to do it this way, maybe, just maybe, things might turn around. From the goverment nothing really surprises me, believe me, we have seen it all, all they can do just to keep staying in the power.
I doubt it, but it will most likely resemble the Chinese coin they are coming out with, which will most likely be private, secretive, and completely traceable.
I am Venezuelan, I can assure you, that this project is to be able to steal without leaving a trace. Those who govern my beautiful country today, are a band of communist thieves. we are living many hardships because of them. They are shameless. but I believe in God and his justice.
@marsella-2017 That was my thinking it looks for me more like a project to fill the pockets of the people upstairs since when they care for the people downstairs. I am very sad for you and the people in Venezuela. I can feel with you guys because I am living in a country ( Mauritius) which has a high political corruption as well and that's why I am leaving next year and go back in my home country (Germany). The Government in Mauritius is telling the world that they are a democratic country but they are not the country is run by a dictatorship. For example after the last election the new prime minister did his job for 6 month and after that he gave his position to his son normally there should be a new election but not here in Mauritius WTF this is no democracy. There is much more going on here and I will do a post about it when I am out of here not that I get problems and end up in jail.
Stay strong and as you say we need to believe in God and his justice.
LOVE&LIGHT for you and all the good people in Venezuela.
This comment fills me with a lot of hope. I would like to join you in my list of friends. It is a pleasure to know that we are feeling the same, and that we can not change anything, we can only contribute with a grain of sand to see smiles on the faces of less fortunate people.
I have a great friend in Switzerland who has been encouraging me a lot. and he has shown his love for me and my family, we only have 3 months being friends and he has helped me as if he were my older brother.
Due to the situation, part of my family has emigrated to other countries. my brother Pedro, went to live in Spain, my brother Demis, went to Peru.
I stay strong, I have to help my parents. who are here with me
steemit has helped me to meet fantastic people who bring new ideas, and little by little we are moving forward.
I follow you from this moment. I hope to know more about you.
Thanks for you kind words you also have me ass a follower now :)))
I am glad to here that you take care of your parents and that you are moving forward it is a pleasure to meet you. Yes Swiss people are nice I been there a few times for winter vacation. Spain is nice as well have a lot of friends from there been there as well a few times for vacation and meeting my friends and Peru is great too had my best experience there doing a lot of ayahuasca ceremonies i was living there for a few month in Iquitos.
Now you know a bit more about me c ya later :))))
Alright, thanks for the information. That is sad to hear if its just going to be another "money grab" where the citizens are the ones to suffer from the most.
Blockchain comes in many forms and can be used in many ways, it's sad to see it being abused like this.
Blockchain (as a technology) cannot be abused @acidyo. Only the term “blockchain” can be abused. If they make a centralized platform calling it falsely “blockchain”, it will not be abuse of technology, but an ordinary scam. If the platform is really blockchain technology, then “money grab” is excluded.
It is a good analogy. but I understand that blockchain technology is a double-edged sword, like many other things, it would all be a matter of deciding how to use it.
Actually @marsella-2017, blockchain technology is a double-edged sword only for those who try to misuse it. It's an open ledger. It can't be forged. So, it forces governments to play completely honest game (in which case they loose control over their decentralized coin), or complete fraud (by lying their coin is blockchain). But lie is not sustainable because the centralized coin will be immediately targeted not only by hackers, but also foreign intelligence services.
I understand the point. but those people have stolen so much money from our country, they need to back it up in a cryptocurrency. to leave no trace of the money they have stolen. No names will appear here.
and past cases where the government of the United States has frozen millionaire accounts to public officials of this disgusting communist revolution.
Just please @marsella-2017, take care when you talk about the “good deeds” of US government against the “disgusting regimes”. Just remember Libya (they also had a “disgusting regime” and lots of oil) and see how does it look today…
And as far as US government is concerned, try follow @dollarvigilante:
https://steemit.com/bitcoin/@dollarvigilante/a-letter-to-the-irs-go-fuck-yourselves-you-bunch-of-criminals
https://steemit.com/bitcoin/@dollarvigilante/joseph-stiglitz-calls-for-the-use-of-violence-against-peaceful-bitcoin-users-on-state-propaganda-tv
I agree with pretty much all you said, but also it is in our hands to change the way we live, how? I'm very certain that you and I live a little "better" than most of our people, therefore WE have a commitment with our country, we need to teach our people how they can generate income using Steemit for example, we cannot sit here just to cry, whine and complain, we need to take things by our hand and actually start doing something.
Excellent friend, it seems that there are connected thoughts I do not want to spam, but it is necessary that you see these publications and we talk about a project on how to move forward and help others.
https://steemit.com/christianity/@marsella-2017/sharing-with-old-hilario-part-2
https://steemit.com/christianity/@marsella-2017/sharing-with-old-hilario-part-1
https://steemit.com/story/@marsella-2017/communism-vs-capitalism-a-real-story
Es una buena idea, hablar con amigos sobre steemit para que generen activos y asi ayudar al país solo no es la queja hay que hacer una buena acción.
eso es correcto mi amigo.
I agree the government will just continue to screw the people. Welcome to Communism.
I think the decision wether to welcome or recline cryptocurrency will be a major factor into how the future for all countries look.
I think this could be a good way to create a new start for Venezuela, because too many have lost hope in the Bolivar, and as we all know fiat currency is mainly backed by belief, so once that's gone...
This is indeed interesting and backing this crypto with oil gold and gas can indeed be successful
I don't know backed by oil, gold, gas and diamonds sounds for me backed by the finance elite and they don't have good things in there minds. Lets just see how this will play out but for sure I keep an eye on it. It is a very nice gesture from Steem to offer no transaction costs for the Venezuelan users wow that makes me very happy and proud to be a part of this awesome platform and community.
I hope and pray the project " PEDRO"plays well out for Venezuela!!!
LOVE&LIGHT
This just shows the potential power of blockchain. I know that the one leading our Fantasy is from Venezuela. It could be interesting hearing his view on this.
Awesome article as always! I quite enjoy following the progress of crypto as it makes its inevitable plunge into the masses ;)
Yep, seems mainstream adoption is lurking around the corner.
I believe that ultimately due to automation and unemployment this platform will explode as an alternative source of income. No matter the risks it entails people would choose it. Behavioural economics has changed conventional economic activity.
The way the crypto world making inroads everywhere is crazy.
Well we were talking about the same issue with @dontstopmenow few days ago not the crypto launch but the economic situation I couldn't beleive the monthly wages when I first heard about them. It is quite cruel how economy works.
or doesn't work in their case.
Exciting to see countries adopt cryptocurrencies! Wonder how this will play out in the long run for venezuela. Hopefully they will be able to overcome their problems
What happens if they do manage to pull it off?
who knows, perhaps they will be a beacon of the coming changes of world economies.
That's interesting ! I'm curious to see how it plays out.
This is only a beginning, since almost all countries are in debt, that they can not pay and fiat currencies will not survive. Something that it looks impossible in the past now becomes a reality.
Agree. Indeed, there has been a rumour that China gov is creating its own crypto. I quite believe it as the strategy is “if you can’t beat it, join it”.
How would you be able to verify that the assets that back up currency actually exist? Trust? Seems sketchy... If they wanted to look out for the best interest of the populous, they should have just recommended switching to an existing decentralized cryptocurrency.
Many of those who applaud in the video do not know what a cryptocurrency is. They are puppets, clowns. aside, there are already two projects that are leading, as in the case of ONIX and BOLI
Yeah, unfortunately those exist everywhere now, even in smaller crypto communities.
Exactly my friend. cryptography has brought good things to the lives of many people, at least in my case, I can bear witness to that. blessings for you.
What could possibly go wrong. This is the best investment ever /sarc
I can’t imagine that Maduro would utilize an open, public blockchain for this. That sounds too much like freedom, a word that doesn’t seem to be in his vocabulary.
You're right. Their only goal is to try to overcome Treasury Dept. sanctions. The president, the VP and other high level govt members have been added to the OFAC list, son their USD accounts have been frozen, and they need a way to move their funds without being traced.
cryptocurrencies are taking over, we need to get on board, seem very inevitable.
This new coin will surely surpass bitcoin
Government making cryptocurrency is a bad mix in my humble opinion. I know in the future it will likely happen more and more, but still when the government continuously fail to control the budget, why in the world would cryptocurrency solve their budgets?
First country to do so but still idk if it actually makes their new currency any better then the old. If the old one fell through FIAT which is based on gold and silver etc well then shit what makes this new crypto any different ?
Well the idea is of course interesting, but I fear this will be a centralized coin use to "print" more money and pay wages... I hope I am wrong and the coin does have a limited emission, but as of now there is no indication of that happening..
If the gov't "owns" more then 50% of the nodes, then they can change the currency any time they want by forking.
This will be interesting.
Good observation.
One rumour is that this "Petro" was already mined by the govt, so...
very informative post like it and upvoted!
petro...
that's great news....
thank's for sharing
If it is open-source and blockchain, then it would not need backing in oil, gold, or anything else. If it has backing in oil, gold, or anything else, then it's not the blockchain, but qualifies as the worst kind of fraud — centralized electronic “money”. As such, it will end like any other centralized paper “money” we have already seen. Only much faster, because it will be targeted not only by hackers, but also foreign intelligence services.
The idea is doomed from the start.
Crypto being backed by oil, gold and diamonds does make it centralized fraud. At very least it will be just like back then when paper money was backed by gold. Therefore you’re incorrect not about the outcome of the project but about its cause.
You didn't read it carefully @fingersik. You said exactly the same thing as I did, just a bit differently formulated. Thanks for the confirmation.
No not really. Its the matter of "how the precious materials will be stored" to decide whether it will be centralized, not the connection to it itself. Also when money was backed by the gold it wasnt a fraud, people just saw (and some still see) value in precicous materials.
Hola!! soy venezolana, no tengo experiencia en esto de las crytomonedas, sin embargo, aunque veo este tema como una oportunidad económica y de negocio para muchos venezolanos que estamos pasando necesidades debido a la crisis que vivimos en nuestro país, no creo que sea la panacea o la solución a toda esta terrible problemática generada principalmente por la mala administración de la economía del país que debería ser el mas rico del mundo, siendo que tenemos las reservas mas grandes de petroleo. Para que una economía sea estable debe haber factores que intervengan para que en conjunto la fortalezcan y apuntalen el crecimiento y desarrollo de una nación, y esto es algo que en Venezuela dejo de suceder hace algunos años porque todos los sectores económicos se han visto afectados por las políticas económicas del Gobierno. Particularmente pienso que este será otro de los proyectos fallidos del Presidente y su Gabinete, no porque piense que sea un proyecto imposible de llevar a cabo sino porque quienes están designados para ponerlo en funcionamiento han demostrado no tener la pericia para el manejo, desarrollo y establecimiento de la economía de la nación.
It seems to me that they will launch a crypto currency, but it will not be backed up by anything. If they could somehow back up the money, what prevents them from doing it with their own currency Bolivar?
interesting article thanks my friend for sharing
@acidyo it's really great to come upon your pieces. They are a real source of information. I am new in here. Can you please help me???!!!
thanks for most useful news.
wonderful news,thanks for good sharing
Best of luck Venezuela.
I hope it works out well for the people.
For their sake, "the Petro" to the Moon. Fingers crossed.
Thanks for nice post sharing
They will rise with steem. It's very good news and ideas for them. Thanks for sharing @acidyo.
I believe crypto can bring a bright future for the country!
I do not really understand about this but from what I read from your article I think Crypto is indeed increasing in the world of blockchain!
especially about stem!
Thanks for giving great update us @acidyo. In fact cryptos going their own way without troubles and unstopping
Oil backed cripto? Has everything to fail. Even with the really slow rise of alternative energys and cannabis based products.(a bit of wishfull thinking here) It is doomed...or we are.
ah
excellent idea & news
This Good News For Cryptooo
Thanks for the full news. I only heard that they wants to create their own cryptocurrency petro.
I even posted the news on steemit. https://steemit.com/news/@hrhridoy/venezuela-announces-the-creation-of-oil-backed-national-cryptocurrency-the-petro
It is very bad that there are countries in which there are a lot of poor people and their level of pay does not always allow them to buy bread. It is possible that they will create their own crypto currency, but then the question will be asked: "how much will it be liquid?". After all, their Bolivar also held on the same resources as the planned crypto currency.
hopefully nothing wrong use it and surely it will be fine
This is so true. I’m convinced that they will ultimately fail due to the tries to keep it centralized, but it is definitely not a bad idea how to improve the shit that is happening right now down there...
I'm sure they will fail. They are not interested in improving economy, this is only a desperate way to overcome Dept. of Treasury OFAC sanctions.
High level govt members (including the president and the VP) got their USD accounts frozen, among other restrictions. Some of them accused of drug smuggling.
Nice informative post @acidyo. I can't help but think this will aid in the rise of bitcoin's value in the future. What do you think ?
I'm not that optimistic, Nicolas Maduro is not good next to crypto, blockchain etc etc, it's a bad combination, They can get a bad image of our Crypto community But let's have faith for the Venezuelans
Good post !Tanks
This sounds like a very interesting plan. As long as the way it is implemented is fair to all citizens, that everyone gets an equal share in an airdrop. Maybe @dan could go an sort it out for them.
I am with the idea of Maduro if the solutions are in front of us and we can overcome the crises and then not