In A First, Fiat Currency Tied To A Cryptocurrency

A sign of desperation or genius?

Venezuela’s President Maduro, who is fighting against hyperinflation, has just done a major financial flip by tying the country’s fiat currency to the value of its “Petro” cryptocurrency. (Most “stable” cryptocurrencies are tied to a fiat currency.)

what-weve-learned-about-venezuelas-petro-token-768x513

That’s right. The new “sovereign bolivar” will move with oil prices and will start off as being valued at about USD$60 per Petro or 3,600 sovereign bolivars.

He has also lopped off five zeros from the currency.

In the meantime, unemployment is rampant, food stores are empty and citizens are fleeing the country in all directions.

https://www.businessinsider.com/venezuela-devalues-bolivar-and-pegs-it-to-cryptocurrency-2018-8

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About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
This entry was posted in accredited investor, balance, Banking, Banks, CFTC, Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, fraud, Investments, Jobs, Legislative Intent, review, technology and tagged , , , , , , , , , , , , . Bookmark the permalink.

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