Venezuela is poised to launch its own crypto-currency, but pay attention to the corruption

The president of Venezuela, Nicolas Maduro, has made a large step in the creation of the digital currency in the country, the Petro. He believes that this technology will develop rapidly and solve the economic problems of Venezuela next year. However, experts are concerned about corruption.

The credit rating agency Moody’s, for example, has stated that the market players have no confidence in the government of Maduro. The latter would be unable to ensure the proper management of this new currency.

The next steps for the Petro

Last week, Maduro announced the creation of the virtual currency in the country, called Petro. This crypto-currency will be backed by the reserves of oil, gold, gas and diamonds from the country. He said that in the coming days, it would sign agreements formalizing the launch of the Petro.

Here are the details of this announcement :

Maduro has also asked his government to co-ordinate the team that will create the Petro, according to Costa Rica News. Both organizations were created by the government to manage the Petro. It is, in particular, the national agency for the control of the Blockchain and the supervisory agency of the crypto-currency.

Avoid penalties or restrict the use of Bitcoin ?

The us president, Donald Trump has imposed economic sanctions against Venezuela in August. Yaya Fanusie, director of the american Center for the sanctions and the illegal financing, believes that, even if Venezuela was developing the Petro and accepted, the new crypto-currency would probably help the government to circumvent the sanctions.

A digital currency backed by the State as the Petro may provide new opportunities for corruption, explained Fanusie. Eric Farnsworth, vice-president of the Council of the Americas, has also stated that the possibility of the development of corruption is huge. By the way, with a good structure and a control of the market, Venezuela could limit these risks.

Source : NewsBitcoin