Venezuela plans to sell oil for Petro, but Dash is creeping to replace the Bolivar

09 Dec, 2018 | Updated: 09 Dec, 2018
by Arthur Sillers
Adoption
Venezuela plans to sell oil for Petro, but Dash is creeping to replace the Bolivar

Venezuela officially is pushing its state-sanctioned cryptocurrency, the Petro. President Maduro announced a forthcoming plan to sell oil for the digital token. At the same time, corporations and service providers are accepting Dash cryptotokens, which officially are not allowed. This will likely cause a scenario where the government is delegitimized in favor of corporations. Will crypto make Venezuela the first cyberpunk nation?

 In a press release, the Presidential Press brazenly touted the benefits of the Petro cryptotoken, calling it a ‘genius economic’ move which will lead to ‘greater dynamism and security’ for Venezuelans. According to Finance Magnate, President Maduro has announced that a schedule for selling Venezuela’s oil reserves via Petro will be announced for 2019 shortly. Maduro claims that Petro-enabled oil sales will allow Venezuela to be free ‘from a currency that the elite of Washington uses.’ While Venezuela has in fact suffered from US economic sanctions, it isn’t clear how the use of Petro will enable Venezuela to significantly break free from its reliance on the US dollar, a reliance which in part has been created by the hyperinflation of the native Bolivar currency due to inept monetary policy.

Furthermore, selling oil through Petro does nothing to fix one of the central problems of Venezuela’s economic woes, which is that oil is essentially the only natural resource in a country bereft of significant industrial or consumer growth, and Petro basically borrows from this already overextended source of export capital. Furthermore, the US has already banned any trading on Petro, and the vast majority of commentators see Petro as a fraud, meaning that anyone outside Venezuela is unlikely to be interested.

While Maduro is doubling down on the crypto scheme, Dash is making inroads to replacing the problematic central currency.

Reports have also come forth that KFC will be accepting Dash cryptotokens at payments in their restaurants.

It’s an interesting turn of events that the most likely entity to ‘free Venezuelans from the USD which ‘elite of Washington uses’ is an America-based international corporation, but an economic situation like Venezuela’s is bound to create these kind of contradictions. This news also follows last month’s reports that Dash Text is striving to create a peer-to-peer transaction service specifically for Venezuela.

Read more: Crypto based charities in Venezuela

If other companies follow KFC’s lead, and Dash Text is successful in creating a crypto-based peer-to-peer financial infrastructure, this will essentially create a parallel economy which increasingly will oust the actual Venezuelan nation’s, where crypto trading is banned besides Petro. Time will tell the economic future of Venezuela, but the state will certainly be competing with crypto alternatives, which are filling a vacuum left by ineffective central currencies.

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Read more about: Venezuela Dash (DASH)

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