The Wall Street Journal’s editorial board has a writeup about the petro that’s among the best I’ve read last week. It’s short, sweet, and smart.
The lomito is right here:
But the token itself is guaranteed by the Venezuelan government, which means it is ultimately a promise from Señor Maduro. In most cryptocurrency token offerings, the underlying blockchain ledger could be used to verify the volume of the transactions. In the petro’s case, because the placement was done privately, this information isn’t available.
It’s baffling why anyone in the civilized world would buy the petro since there are already multiple ways to speculate on oil prices using reliable securities.
In short, are you going to “take the word of the government that produced the highest inflation rate in the world in 2017”?Caracas Chronicles is 100% reader-supported. Support independent Venezuelan journalism by making a donation.