Many readers have asked me to clarify my position regarding the start of the auction of the cryptocurrency Petro and the upcoming cryptocurrency Petro Oro announced. Here is my opinion ratified by several recent articles. Therefore I refer only to repeat concepts already published and public domain.
Petro and Petro Oro are cryptocurrencies backed by oil and gold respectively. Although they compromise the oil reserves. the only thing that these cryptocurrencies achieve is to facilitate obtaining financing and breaking the US siege to the international financial and banking blockade because central banks are jumping. But these cryptocurrencies can not be foreign currency and fail because they are not coupled with a VENEZUELAN CURRENCY referred to the Gold Patron of national circulation through coins and notes issued by the BCV. The Petros and Petros Oro, as well as the Petro Gas and Petros Diamante do not constitute circulation coins in Venezuela. Read the article: Criticisms of PETRO according to Decree 3196 of 08-12-2017 https://www.aporrea.org/actualidad/a256809.html
What does a common citizen do with the Petro or Petros Oro? Can you go to the auto market and pay with petros? Who owns them who negotiates to make a purchase in euros or dollars? Who would receive in exchange for an instant to yen for example 10 million petr to buy CKD for Japanese vehicles? Both the Petro and Petro Oro cryptocurrencies will never be used currency by the ordinary citizen. The Petro and Petro Oro will be of exclusive access to those who own dollars. Both cryptocurrencies will never be reserve currencies for the Venezuelan who wants to save in their own currency.
Given the government's repeated refusals to implant a Venezuelan currency, we conclude that it DOES NOT WANT TO DO IT, and in this way avoid losing control of bolivars dollars. For more than three years we have alerted with publications, forums, conferences, radio and TV interviews about the risk of keeping the economy dollarized by selling oil in dollars. But the government is still deaf and let inflation ruin the country causing flight (diaspora) of the country seeking to save life because there is no food, no medicines, no automotive or industrial parts, no appliances or spare parts, etc.
The Bolívar-Oro and the Bolívar-oil currency (I) 04-11-2014 https://www.aporrea.org/actualidad/a186157.html
The bolivar-oro and the bolivar-oil currency (II) 04-18-2014 https://www.aporrea.org/contraloria/a186551.html
Why does not Venezuela sell its oil exports in bolivars? 08-14-2014 https://www.aporrea.org/energia/a193230.html
What is the Exit to the current Venezuelan economic crisis? 11-01-2015 https://www.aporrea.org/energia/a200905.html
Therefore, given that the current government has been deaf to publicly announced alerts to sell oil in Bs.Oro Venezuelan currency. For this reason, the government is TOTALLY RESPONSIBLE FOR THE Venezuelan ECONOMIC DEBACLE due to wsbsite DolarToday's attacks. This situation has caused speculative inflation, famine and death due to lack of medicines and scarcity of goods and services in general. Had we done so, we would have decoupled from the dollar and DolarToday would have been neutralized. With the Bolívar Oro currency, the financial, banking and commercial blockade implemented by the US and Europe against Venezuela would have been neutralized, because the Bolívar Oro currency would be INEMBARGABLE because it is the exclusive property of Venezuela.
Selling oil in yuan does not de-dollarize the Venezuelan economy because we continue to receive dollars and buy dollars. Therefore the US has blocked us the bonds in dollars, the accounts in dollars, the bonds in dollars, because simply the owner of the dollars is the government of the USA and as owners they confiscate and seize. While we sell in Bolívares Oro with the associated PetrOro cryptocurrency, all the bonds, accounts, investments are made in Bolívares Oro and not in dollars or yuan. Anyone who wants to buy oil must first buy Bs.Oro to pay for it and therefore we save in our own currency that can not be seized.
More and more countries are beginning to see the advantages of a demarcated system of the US dollar. Iran and India, as well as Iran and Russia, sell hydrocarbons in exchange for raw material products, thus avoiding US sanctions. In addition, China's economic strength allowed it to allocate a 10 billion euro loan to Iran, which allowed it to bypass the recent sanctions. In addition Russia and China go to the gold standard of their Ruble Gold and Yuan Gold currencies, as well as the BRICS countries (Brazil, Russia, India, China, South Africa) will soon launch the BRICS Gold. In fact, China is selling yuan oil bonds to be exchanged in the future for gold yuan in the gold market. Shanghai energy.
Venezuela began a refusal to sell oil in dollars doing it in yuan, thinking that this way we de-dollarized our economy, big mistake. Our country has the largest reserves 25% (560,000 million barrels) of the world's oil, and maybe it will certify (go 11,000 tons) the possible 25,000 tons of gold in mines and open skies (13% of the total gold extracted in the world at all times). This situation merits Venezuela to have a currency referring to the Gold Standard and backed by oil. The Bs.Oro currency would float with respect to the volume and price of the oil that we sell and it is shielded with respect to the value of the troy ounce of gold.
China buys oil from Venezuela in yuan and plans to buy gas and oil from Russia paying with yuan. Moscow will convert the yuan into gold in the Shanghai International Energy Exchange. This gas-yuan-gold mechanism represents revolutionary economic changes due to the gradual abandonment of the dollar in trade. But for Venezuela, because of its unique dependence on 97% of oil, it would be much more effective if the Bolívar Oro currency is implanted with the associated PetrOro cryptocurrency.
Therefore, these cryptocurrencies are destined only for operations or "shots" of money without identification of the issuers (anonymous), without paying taxes to Venezuela. This situation allows the crimes of money laundering, drug trafficking, and avoids the payment of taxes to Venezuela.
In addition, the Venezuelan citizen would not have these Petros and Petros Oro cryptocurrencies because they must buy them at auctions at prices outside the reach of the people because of their high cost. For an ordinary citizen, 1.00 Petro is worth US $ 60.00 (one barrel of oil) or Bs. 13,800,000 at the current exchange rate of 230,000 Bs per dollar as an illegal and speculative parallel change. This is a price beyond the reach of the Venezuelan on foot.
This scenario changes radically if the government establishes a new Venezuelan DIVISA attached to the Gold Standard, such as the BOLIVAR ORO DIVISA with a value of 1/100 troy ounce of gold 999. In this way, the Petro Oro (PetrOro) would be a single CRIPTODIVISA. value equal to BOLIVAR ORO DIVISA and issued only by the BCV. This DIVISA Bolívar Oro would have coins and bills of free circulation in Venezuela and within the reach of ordinary citizens. Then: 1.00 Bs.Oro = 1.00 cryptocurrency PetrOro = US $ 13.00 at birth.
Petro Oro (PetrOro) cryptocurrency must be subject to the following conditions:
- Issued only by the Banco Central de Venezuela
- With equal and constant parity with the Bolívar Oro currency that I proposed with a value of 1/100 of a troy ounce of gold 999, that is with a current value of US $ 13.00. That value of Bs.Oro is floating with respect to the oil that Venezuela sells in volumes, price and currency with which customers buy that oil. Therefore the weighted value described refers to the troy ounce price of 31.1 grams of 999 gold.
- The BCV must generate software to regulate the use of the cryptocurrency PetrOro has in turn the following control factors: RIF of the issuer of the "shot", concept thereof, destination, ISLR to pay for the amount of that "shot " This avoids money laundering, the flight of money, the omission of tax payments and the identification of the issuer, destination and concept. This process would be carried out automatically with this software on a Blockchain platform or block chains that allow for example Etherom.
- Foreign cryptocurrencies should be prohibited in Venezuela to avoid money laundering, swallow capital, capital flight and illegal use of money, such as drug trafficking, terrorism, human trafficking, etc.
The Petro and Petro Oro cryptocurrencies established and operational by the current government, although backed by oil and gold, do not manage to demarcate the Venezuelan economy from the dollar and yuan. Therefore we will continue selling and buying in dollars the oil, goods and services in foreign currencies that control us financially and with the dollar block us the commercial and financial operations. On the other hand, the Bolívar Oro and the associated cryptocurrency PetrOro would be INEMBARGABLE.
The Bolívar Oro and the PetrOro would have these additional advantages to only sell the oil in yuan:
- Exclusive property of Venezuela of Bs.Oro and Petro which makes them unattachable.
- Fixed parity of the Petro and Bs.Oro of 1/100 of troy ounce with fast equivalence to the Gold Ruble, Yuan Gold
- Release of the change in Bs.Oro applying a heavy 55% tax on capital outflow for no reason and 15% tax for any other reason of the "shot".
- End of the destabilizing and illegal Dollar Today.
- End of the banking and financial blockade of the US and Europe against Venezuela.
- Opening to the international capital markets on the Stock Exchanges using Bs.Oro and Petros.
- Internal inflation in Venezuela of one digit and one-digit bank interest with total reactivation.
- Availability of immediate liquidity when monetizing bonds in Bs.Oro which would be unattachable.
- Savings of Venezuela in its own and very solid currency.
- Repatriation of capital seeking safety and better returns.
All this is explained in: Petro currency announced and Bolívar Oro proposed 04-12-2017 https://www.aporrea.org/economia/a256085.html
We regret the deafness and lack of planning of the government of Maduro in the monetarist policy. The implementation of a Bolivar Gold currency of 1/100 oz gold troy as the official currency of circulation in Venezuela is essential. The cryptocurrencies Petro must become cryptocurrency with equal and unchanged value to the official Venezuelan currency. The current disasters of our economy are due to the absence of this official currency, of course accompanied by the cryptpdivisa Petro. God bless Venezuela and the Venezuelans to overcome this severe crisis.