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Venezuela’s National Cryptocurrency Advances But Experts Warn of Corruption

Yaya J. Fanusie
16th December 2017 - Quoted by Kevin Helms - Bitcoin.com

Venezuela’s president Nicolas Maduro has advanced the creation of the country’s national cryptocurrency, the Petro. He believes it will take off and solve the country’s economic problems next year, but experts are concerned with corruption. Moody’s credit rating agency, for example, says market participants would have no confidence in Maduro’s government to manage it.

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Yaya Fanusie, Director of the U.S. Center on Sanctions and Illicit Finance, believes that even if Venezuela were to develop the Petro and find acceptance for it, the new currency would unlikely help the government circumvent sanctions, El Nuevo Herald reported. “Most cryptocurrencies are identifiable and are not used as much to help authoritarian regimes to circumvent far-reaching sanctions,” he claims.

Instead, Fanusie suggested that Maduro’s announcement “sounds more like populist rhetoric to convince people not to use bitcoin,” which has become popular in Venezuela as the bolivar continues to depreciate.

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