Venezuela to replace dollar with oil backed crypto

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How is it crypto if it's being issued by the Venezuelan government?

Because it’s using block chain permissionless database tech.

Tbh I won't buy it, but I will mine it.

This gotta be the porkiest thing ever

t. Amerifat


Didn't China start buying oil in the Yuan?

Why not just switch to the Yuan?

This, Venezuela is already doing that.

Venezuela got in the shit because of oil, they learn nothing, when they will ran out of oil for good they will be fucked for good.

It sounds like a brilliant scheme honestly. Its an oil-backed currency (which Venezuela has plenty of) but much like a central bank during the classical gold standard era, I'm sure Venezuela is counting on the fact that only a fraction of the holders of this crypto will attempt to redeem it.

So, Venezuela is making their currency dependent on the resource that their over-reliance on caused their whole economy to collapse?

Seems smart.

so where the fuck are my crypto labor vouchers?

Smarter than depending on the sale of oil to cover their budget tbh

For now. Oil is a non-renewable ressource, it's irresponsible to base a currency on it.
I know it could be some kind of gold standard and gold is also non-renewable ressource but oil is too short-term.




Wow, holy fuck if I had money I'd go in on bit coin IMMEDIATELY. Back to 20k for sure what in the everloving fuck! I never could have predicted this, but crypto currencies are going to blow out of this world, I'm telling you all.

But if one does, they could potentially have a bank run. They also have to convince bankers to buy this thing that they own and they control (similar but not the same as bonds) when few people trust their ability to repay.

Sure, but not BTC. It's a shitcoin that can't scale and has too many technical problems for widespread use. Even if banks adopt cryptos it's going to be as software services, not a tradeable item. See HP's Distributed Ledger System.

Venezuela has the biggest proven oil reserves on earth, their problem being:
1) It's shit-tier quality oil which costs a lot to refine, pretty much everything that is mined has to be exported to the US, which is probably the only country with that kind of technology, and then bought back at very high prices.
2)It is mined very slowly (and thus sold in relatively small amounts) compared to other oil exporters like Saudi Arabia, because Venezuela's oil industry was only nationalised fairly recently and was highly reliant on foreign oil companies before that.
Is Peak Oil does happen Venezuela should be one of the biggest beneficiaries, even with its less than ideal industry.

So with their new oil currency, aren't they going to be even more dependent of the US?

Yep, they can't profitably extract it when prices are low. No one will buy heavy crude that costs 50$ a barrel to process when better crude is available at similar prices. When their oil became unprofitable to sell, their government suddenly had 90% less revenue and shit hit the fan.

I considered saying "or an altcoin" but I ended up editing and forgot it. I dont know the intricacies, but if a no-value e-coin can be worth 18k a state-backed coin has to positively effect value. Sage for little content.


What a meme. You can't blockchain your way out of macro economic trouble and encirclement.

tfw you don't know what to do with your oil so you burn it in generators to power bitcoin shovels

You can't fight the dollar's monopoly on oil by creating a new currency and giving it a monopoly on oil. People are just going to use dollars to buy up your shitcoin and then buy up your oil. what is this shit? What it going so wrong in the development of venezuelean brains?

They should just start exporting all their oil to the DPRK tbh, they would make better use of it.

Either retarded or pretty smart, I have no idea.

I don't understand what is meant when they say "backed by". Are they saying people can redeem their Petros for Venezuelan oil? That seems risky and stupid. Are they saying that Petros are abstractly pegged to oil like a derivative? Might be interesting, they can basically sell these things to a bunch of speculators and get $6bn of easy money, and then tell those investors they have no liability to them at all. Would be kind of funny.

I don't think some anons ITT actually understand what Venezuela's doing:
they aren't simply re-making bitcoin to sell. this is an actual oil-backed currency (non-fiat).
they're having trouble selling oil right now because of U.S. sanctions, this will get around that.

Venzuela and Korea were a match made it heaven, I have no idea why they haven't made efforts to create a real link yet. I mean, Chavez was edgy enough to get it on with Iran, Korea at least has ideological affinity.

My guess is that Venezuala is still too dependent on the world market to sell its oil and buy imports. Thanks to the imperialist sanctions against the DPRK, anyone who would want to trade with them and lacks a veto on the UNSC is ruthlessly punished.

Might be a ploy to combat economic warfare on oil prices. Give a ton of neckbeards muh buttcoins that depends on venezuelan oil prices, then they're gonna get pissed if america and friends try to boycott or sabotage vzla's oil.

This all is coming from a financelet brainlet btw.

Banks still gotta wire money to whatever institution in Venezuela is going to be selling the Petros though. Seems like the state could identify this and stop it. Plus oil has to still be shipped out and accepted by somebody. Even if it was bought with "Petros", a port somewhere is going to receive oil from Venezuela and I'd imagine the port authority could look at the shipment and say "this is illegal, we aren't supposed to be receiving any Venezuelan oil". I could be completely wrong, but I'd figure any big company wouldn't want to put up any large amount of money if they are risking having their oil shipment stopped before it could enter the country because it is coming from Venezuela.

I sure as fuck don't get it. Are they tying their oil reserves to this currency like 1 coin = 1 barrel? If so, why make it a crypto, aren't cryptos supposed to get their value from their limited availability? How is this a good idea in any way?

Does anyone speak Spanish here? I only understood "Ethereum".
inb4 Venezuelan economy getting hacked by exploiting an integer overflow.

Oil is limited.

I know.
But as I understand it bitcoin and other cryptos have artificial scarcity built in to them, and this is what arguably gives them value as a means of trade.
A oil backed currency would just be a voucher for a given amount of oil.
I don't understand the logistics or reasoning behind combining these two forms of value.

oil barrels are real things
crypto "value" is imaginary work derived from computers "mining"=solving algorithms
it has value sure but its nothing compared to something that you can actually actively measure and control physically

nothing technical has been released to the public yet, but I'm assuming

I think you underestimate porky. If people with money would be scared of risking their money just because something is illegal, there would be no cocaine in US/Europe.

Wasn't even Trump doing some business with Cuba long time ago? Porky can not resist money.

Or they can simply say that their oil can be bought only for petros which they can issue freely.

Remember, while idea of another oil-backed currency is great, this is Venezuela we are talking about. They are going to fuck up what they are doing, either by their own mismanagement or CIA influence, most likely both.

Wait so does that mean i can walk into a Venezuelan bank and cash in 1 Oil backed Bolivar for 1 tenth a barrel of oil?

I might unironically get in on the Petro ICO lads, Petro is forked from Decred and the people who code Decred are legit.