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Nicolas Maduro's Hype Is Too Expensive For Venezuela

09 August 2018 19:29, UTC   |   2539
Nicolas Maduro's Hype Is Too Expensive For Venezuela
By Oleg Koldaev, Catherine Lange

We already wrote about the consequences of launching the national virtual money in Venezuela. That was an outside perspective. Indeed, the world economic community is concerned about Nicolas Maduro's initiative. Not for Venezuela, of course, but for the situation on the global market. In order to obtain a complete picture, we plunged deeper into the problem and listened to the Venezuelans' views of issuing El Petro.

The skepticism of the country's inhabitants is no less than that of economists. Here, for example, is one of the multiple opinions. "Only public officials have gained access to El Petro, - says Jocelyn Avila, the retreat facilitator and social media designer for Crypto World Journal blockchain conference. - I don't trust this virtual money much and am not going to buy it. And I don't think that El Petro may help Venezuela to overcome the crisis".

In fairness, we need to notice that such statements are the majority. This is a nice demonstration of the level of confidence in this country's authorities. Software developer and crypto investor Albert CORTEZ from Merida gave Bitnewstoday.com a special and the most interesting and detailed interview.

Bitnewstoday: Is El Petro popular amongst Venezuelans?

Albert Cortez: Actually it's not. Most people don't even know how to get and use it. Many do not believe that it's not another Maduro's "fairytale". The crisis has changed Venezuelans: 70-80% of my fellow countrymen are busy finding basic resources, such as gas, electricity, water, and food. They don't have time to think about some virtual money.

- Do you have a crypto wallet?

- Yes. I'm a self-employed crypto trader. Buying digital tokens is a good way to avoid hyperinflation. A small amount of bitcoins, dogecoins in hand is an opportunity not to lose money.

- What do you think about national cryptocurrency?

- In my opinion, El Petro is not a bad idea. Hyperinflation made paper money useless and turned the shopping on a small market, where you can't use credit or debit card, into a nightmare. Venezuelans do most of their shopping under the clearing settlement. But the slow internet access and energy shortages do not help with this. Virtual money may provide a way out of distress. But, unfortunately, there's no confidence its authorities. And I don't want to invest in cryptocurrency controlled by this government.

- Do you think cryptocurrency may help to overcome the crisis?

- Now El Petro is not a "real"  virtual money. You can't mine it. The government controls the most of it, and you can’t trade it on exchanges. I think that if El Petro will become politically neutral, trading and free from the government's hands, the economy will experience a spectacular recovery.

- What are you expecting from El Petro?

- Currently, El Petro is almost dead. Nobody is making deals, nobody is even talking about it. Most citizens consider it one more possibility for the Maduro government to gain money from crypto investors. On August, 20 there will be a denomination, and Bolivar will lose five zeros. El Petro will become a part of national currency's back. Maybe it will improve the situation a little. But nobody has explained to us, how virtual money is going to work. There are rumors that people will be able to pay in it the same way as in Bolivar. Actually, people don't know much.

As a rule, when the state is on hype, nothing good ever happens. Against the background of other countries Russia regarding virtual money looks very prudently. It doesn't ban virtual money like China, doesn't let control to run amok, like the USA, and doesn't hype like Venezuela. Russia thinks. As the old saying goes: measure twice and cut once.

Bitnewstoday will be following developments closely. Not only in Venezuela, but in Iran, India and North Korea as well - whenever there is a similar problem. Subscribe to our news.


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