Week of 2/19/18

In recent news, Venezuela has now issued a digital currency in order to resistant its economy. The Venezuelan economy has become so bad, that citizens can no longer afford food or water. Unde the Maduro administration, Venezuela has gone through their worst years, yet and Maduro is very aware of this calling his country situation “indomitable” and Petro is their “Superman”. Petro will be backed on the country’s oil reserves. Officials have failed to explain how this new currency will be regulated and the inner details of the new system. However, many people including myself are skeptical of this new currency. I believe that the economy has become so bad that the government has no other viable solutions, so they are basically throwing a Hail Mary. The absurdity of it all is that this new digital currency is heavily influenced by cryptocurrency which has a history of being very unstable. The United States has warned citizens not to invest in Petro as it is a clear legal risk. It is also worth noting that Maduro will soon be going up for re-election, so this is a ploy for the people to keep him in the presidency. However, it is absurd that a virtual currency would be able to save a country. What is also new to me is that other countries such as China, Russia, and England have experimented with virtual currencies. I am just confused on why they would do something like this because they have a real currency that is already backed by gold. Is it that they will create a virtual currency to compete with cryptocurrency?