Don’t be fooled – Venezuela’s Petro is not really a cryptocurrency

Petro’s connection to the government goes against the whole idea of cryptocurrencies. They were originally designed to be decentralised and free from any government or central bank control.

In this sense the Petro is not really a cryptocurrency – it is a digital security or token, backed by oil reserves. You are not buying anything that can be freely mined and traded on open cryptocurrency exchanges. The mining is controlled by the government and, as explicitly mentioned in the ICO documents, it will decide what exchanges can trade the Petro. It is therefore simply a digital form of debt from a country with no financial credibility and that is badly mismanaging its economy.

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