With the news breaking that Venezuela would soon be issuing an oil-backed cryptocurrency, I couldn't help but smile. It was surely only a matter of time before a big oil producing nation would do this, and I was happy to hear that it is a country currently experiencing hyperinflation, a country suppressed by the US, a country not in the Middle East.
Venezuela are making a very smart move. If executed well, this currency could position them as the richest nation in South America. An oil-backed currency could and should become the reserve currency of the oil trade. Could this new currency replace the dollar for oil transaction world-wide? If they write the code well and act with integrity and transparency, Venezuela has an opportunity with this plan to become a serious global economic player.
What do you think? Is this Venezuela's rags-to-riches story in the making?