This is easy for Venezuela

President Nicolas Maduro has said Venezuela would launch a cryptocurrency to combat a US-led financial “blockade,” although he provided few clues about how the economically crippled Opec member would pull off the feat.

The solution to hyperinflation always is a new currency. One that is rigidly limited in issuance so that people can have confidence in it. Maybe not a sufficient criterion, but a necessary one.

So, hands up everyone who thinks Maduro is going to launch a currency with a hard and not breakable issuance limit?

Quite, it’s not going to work, is it?

7 comments on “This is easy for Venezuela

  1. Surely the first concern is can they afford to pay anyone to develop it? Given the state of the country anyone sensible would want to be paid at least 50% up front in USD.

  2. The obvious question is that if he likes a hard currency, what is wrong with the Bolivar or whatever it is called? He has a currency already. He can do what he likes with it. Why not fix it against Bitcoin?

    What US financial blockade by the way.

  3. “The digital currency will be backed by Venezuelan reserves of gold, oil, gas, and diamonds, ”

    But notably lacking that backing needed by any currency, Crypto or otherwise. Confidence.

  4. Mass starvation and absolute zombie apocalypse -style collapse is the question Venezuela should be concerned with–ie avoiding same–not crypto-bollocks.

    Crypto-currency? If they had Krypto the Wonder Dog down there the poor fuckers would be trying to eat him.

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