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Experts: Crisis in Venezuela finally bury national cryptocurrency El Petro

The already questionable project of the Venezuelan national cryptocurrencies El Petro, in terms of the unfolding political crisis in the country is doomed to fail, experts say.

Yesterday, January 23, speaker of the Parliament of Venezuela Juan Guido declared himself interim head of state the validity period of the provisional government. The United States and several other countries announced the recognition of Guido.

Experts interviewed by the news Agency Prime, pointed out that the idea of a national cryptocurrency Petro, who was initially very dubious, and now all is doomed.

“The rate of the national cryptocurrency doomed to a continued slump, which has already since the release is hundreds of percent, and the interest in it will continue to show only marginal members of the gray oil and gas market. Now the transaction costs exceed the savings from reducing the cost and increasing the speed of calculations,” said Professor of the Department of financial management of REU named after G. V. Plekhanov Constantine Ordov.

The independent expert Gleb Kostarev added that in the event of a coup, the new government is likely to shut down the project for a national cryptocurrency. On the other hand, Petro and so was not viable — on any relevant exchange it is not traded. In addition, presumably it must be ensured reserves of oil, but about who and how conducts accounting of oil, no data.

A similar opinion of the President of the analytical Agency “Biznesprom”, member of state Duma expert Council on digital economy Arseniy Poyarkov.

“National cryptocurrency of Venezuela before was a bold experiment… By and large, nothing has changed. She was provided no other than the beautiful words, and left,” said he.

The news analyst of the market of cryptocurrencies Olga Neroda believes that the political situation in Venezuela may eliminate the need to further develop the project.

“The change of government in Venezuela is one of the risks that investors had to consider when investing in Petro. If cryptocurrency was created to bypass the sanctions, it is likely that under the new government, supported by the United States, it is no longer needed. There may be some alternative use of Petro, but do not undertake to predict,” she said.

In the Russian Association of kryptonyte and blockchain (RAKIB), in turn, believe that the current model El Petro can survive, but it will have to significantly change. In RAKIB note that the directly political instability in Venezuela negatively affect the prospects of the cryptocurrency.

“However, given the fact that the outcome of the political confrontation at the moment, yet it is difficult to predict, investors and partners will not take any drastic steps. Coin provided with oil, if Maduro loses, the possible denationalization of national resources, and then the current model El Petro, is likely to undergo significant changes”, — noted in a press-service of the Association.


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