Today I wanted to address the idea of country based cryptocurrency, and what this could mean to the markets overall. First let's discuss the Petro coin, and how it will be pre-mined, and that in it's self is not unusual, but the coins will be held by the government of Venezuela.
Now there are many pre-mined coin within distribution, and these coins have concentrated ownership. So this initial part is not unusual, and with this statement "The president has already set aside 5 mln barrels of Venezuelan oil in preparation, with the currency set to launch in 6 weeks in the form of an auction, as it will be pre-mined." But what is to stop this current government from just creating more coins just as they have done with their fiat currency?
You can read the article here.
Venezuelan President Maduro Calls For 10 Countries To Embrace His Oil-Backed Coin
Secondly I have to wonder what the impact will be with cryptocurrency as an industry with countries coming on board. Does this raise awareness yes, but does this coin only bring about the possibility of a ban on all crypto's within a country that uses this coin? I don't think we can eliminate the possibility that this may be the goal since bitcoin is running crazy across South America, and the peoples of many countries there use it for daily life.
So I'm curious what others think about this development since it will start this month, and we see they coins start to pop up on exchanges.
Until Next Time!
