Cryptocurrencies rely on confidence in clear rules and equal treatment of all involved, three experts said, adding that Venezuela was widely seen as flouting basic property rights and mismanaging its existing bolivar currency.
Without such confidence, the “petro” would neither help Venezuela raise funds nor help it avoid sanctions levied by U.S. President Donald Trump’s administration.
“If any government is willing to set up a fair set of rules for a cryptocurrency, it would be a great thing,” said Sean Walsh of Redwood City Ventures, a bitcoin and blockchain-focused investment firm.
“But if an administration has a history of unfair treatment of the population, then tacking on a buzzword like ‘cryptocurrency’ isn’t going to change that behavior.”
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