Tuesday, February 27, 2018

Growing abhorrence to the dollar leading over 100 countries to line up to buy Venezuela's Petro cryptocurrency

Just when we thought Venezuela's oil backed cryptocurrency scheme was simply an attempt for Nicholas Maduro to hang onto power a little while longer, a funny thing happened when sales of the Petro went online.  And that is that there are now nearly 130 countries lining up to buy the Petro according to a government announcement.

True resource backed securities have almost become an anomaly in today's financial markets as nearly everything is tied purely to paper rather than to a physical commodity.  And this can be seen in the fact that the largest single sector in the world is that of the derivative markets.

But perhaps what is also underlying this sudden interest in a sovereign cryptocurrency being issued by a completely insolvent government is the even greater desire for nations to get out of the dollar, and find alternative ways to purchase their oil in currencies outside the global reserve.

According to Maduro, investors from 127 countries have requested the purchase of the Venezuelan oil-backed cryptocurrency petro. 
“Petro is the future of Venezuela and the world. This cryptocurrency is linked to the future of economy, production and finances in the region,” Maduro said during his speech at the ceremony in Caracas. 
The Venezuelan President has also clarified that 87,200 users in total have requested the purchase of el petro, out of which 3,520 were enterprises, while 83,760 were individuals. Some of those numerous requests were from Australia, Germany, Belarus, Brazil, Cuba, Spain as well as the US, France, Saudi Arabia, etc. – Sputnik News
Indeed, if reports are correct, Petro sales have already surpassed $1 billion in just the first two days of their ICO.  And when you couple this alternative model with China's soon to be initiated Yuan-denominated oil contract, the ability for nations to bypass the 45 year old Petrodollar system without too much fear of retaliation by Washington will open the door to not only how countries purchase oil, but also in the creation of methodologies on the Blockchain for an entirely new financial system that doesn't require a reserve currency.


Post a Comment