Venezuela is still officially pushing its digital currency, Petro, towards mass adoption. Where President Maduro announced an upcoming plan to sell oil for the digital currency. At the same time, companies and service providers accept a Dash currency, which is not officially permitted. This is likely to cause a scenario in which the legitimacy of the government is delegated to companies. Will all this make Venezuela the first country to officially resort to digital currency as a radical solution?
Oil vs. Petro
In a press release, the presidential press described the benefits of Petro’s digital currency, describing it as an “economic genius” movement that would lead to greater dynamism and security for the Venezuelans. According to Financial Magnet, President Maduro announced that a timetable for the sale of Venezuelan oil reserves through Petro would be announced in 2019 soon. Maduro claims oil sales backed by Petro will allow Venezuela to be free of the currency used by the elite in Washington. While Venezuela has in fact suffered from US economic sanctions, it is not clear how Pietro Venezuela can be used to drastically dispose of its dependence on the US dollar, a dependence partly created by the excessive inflation of the local Bolivar currency due to inefficient monetary policy.
Moreover, the sale of oil through Pietro does nothing to repair one of the central problems in Venezuela’s economic problems: oil is essentially the only natural resource in a country deprived of important industrial growth or an important consumer, and Petro leans from this overriding source Already for the issued capital. Moreover, the United States has already banned any trading on Pietro, and the vast majority of commentators see Petro as a scam currency, meaning that anyone outside Venezuela is unlikely to be interested.
Dash becomes the first currency in Venezuela
As Maduro bet on his digital currency scheme, Dash’s digital currency is quietly making its way to replace the controversial central currency. Reports also showed that KFC will accept payment in Dash currency in their branches in Venezuela.
You will find an exciting turn of events when you discover that the most liberal entity to liberate Venezuelans from the dollar used by the elite in Washington is an international company based in America, but the economic situation of a country like Venezuela must create this kind of contradiction. The news also came with reports that Dash Text was seeking to create a transactional transactional service specifically for Venezuela.
If other companies follow the KFC line and Dash Text succeeds in creating a financial infrastructure based on digital currencies, this will essentially create a parallel economy that will increasingly overthrow the actual Venezuelan currency, where non-Pietro currency trading is prohibited. We will know with time the economic future of Venezuela, but the state will certainly compete with Petro alternatives, which fill the void left by the central currencies ineffective.