A Programmer from Venezuela Regrets Being Part of the Petro Token Project 0 255

In the past 12 months, the central bank digital currency (CBDC) industry has continued to gain a lot of progress and adoption. Almost every tech-savvy country aims to work on the technology and come up with its own digital currency.

Venezuela is a country, which also aimed to launch its own central bank digital currency (CBDC). Fortunately, even with the hardships, the country managed to launch its CBDC called the digital petro.

However, the acceptance rate for the country’s digital petro has not received the acceptance rate the country had expected it to have.

Just recently, the creator of the digital petro has made an announcement. He has expressed that he plans to release a new cryptocurrency. He stated that the petro has not received as much adoption and acceptance that was expected of it. Therefore, he wants to create a new cryptocurrency that lives up to the reputation of becoming a new CBDC for Venezuela.

As per him, the cryptocurrency he plans to create and launch would be the best alternative for the digital petro. It would rejuvenate the value and capitalization that the government had expected from digital petro.

According to reports, the creator of the digital petro is Gabriel Jimenez, who is a programmer. He revealed that the name of the new digital asset he aims to create is “Reserve”. He stated that with the help of Reserve, a new revolution would be introduced into the cryptocurrency industry.

Gabriel Jimenez, the programmer behind the launch of digital petro now resides in the USA. He stated that he is very much familiar with the cryptocurrency industry and how the cryptocurrency community works. He also stated the same about the government of Venezuela and its involvement in the cryptocurrency space.

He claimed that although he helped the government of Venezuela with the creation of digital petro, yet he has never supported the Venezuelan government. He is one of the individuals that has protested a lot against the government of Venezuela as well as Maduro.

He protested against the treatment of Maduro’s government over the citizens of the country in terms of currencies and the high inflation rate. Therefore, they had hoped that the citizens of Venezuela would find digital petro to be an excellent replacement in hard times.

This way, the citizens of South Affrica would have found a solution and an alternative to the digital currency system that is powered by the government of India.

He stated that all the effort he put in the creation of digital fiat currency, it failed in many ways other than adoption. Therefore, he plans to tackle the problem with the help of the new CBDC, and this time around, the currency will be a successful

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IMF Says Russia and Iran May Use Crypto Mining for Monetizing Energy 0 42

The April 2022Global Financial Stability Report of the IMF has highlighted the consequences of the ongoing Russian invasion of Ukraine. The document said that the role of the US dollar was bound to be affected because of the conflict, as it would lead to the introduction of central bank digital currencies (CBDCs) and the global financial system’s resiliency would also be put to a test. The climate transition goals could also be put at risk because of the priorities associated with energy security. Another issue that would have to be dealt with in the coming years by lawmakers is the ‘cryptoization’ which is likely to occur because emerging markets are experiencing a widespread use of crypto.

IMF cited an increase in crypto trading volumes seen after the introduction of sanctions on Russia to back their statement. This included the financial penalties that had been imposed by Western nations on Russia because of its military invasion. The report said that such cross-border transactions were increasing in the long-term, which means that there would be challenges when it comes to imposing sanctions and managing capital flow. The IMF noted that crypto transactions have increased in both Russia and Ukraine because of the capital restrictions that have been imposed.

However, it is important to note that there has been a fall in liquidity in centralized exchanges where the hryvnia and ruble trading pairs are concerned. Therefore, using crypto exchanges for making large transfers has become rather impractical due to reduced liquidity. But, the IMF admitted that users do have the option of evading some measures via the crypto ecosystem because the identity verification requirements are quite lax in this industry. Hence, the international organization said that blocking new deposits of ruble and freezing crypto assets meant that users could have shifted to non-complying or less transparent crypto platforms and service providers.

Experts at IMF believe that both Russia and Iran could circumvent their respective sanctions via crypto mining. The nations could use their energy resources for generating revenue via crypto mining outside of the traditional financial system. Currently, the countries have a limited share of crypto mining activities, but there is a possibility that it could be increased, considering the size of the mining industry. The IMF quoted estimates showing that almost 11% of the mining revenues of bitcoin could have gone to Russia, which was around $1.4 billion per month, while Iran’s share had been 3%.

Bank of England Says Crypto Assets have Financial Stability Risks 0 81

On Thursday, the Financial Policy Committee of the Bank of England disclosed that they are working on developing a regulatory framework for digital assets. The central bank also made a reference to the sanctions that have been imposed because of the war between Russia and Ukraine in the statements. Bureaucrats and financial regulatory authorities all over the world have become increasingly concerned in recent times that Russia could take advantage of crypto assets to bypass the economic sanctions that have been imposed. The press statement of the BOE said that it was unlikely for crypto assets to provide Russia with a feasible way to get around sanctions at a large scale for now, but there was a possibility they could do so.

Therefore, it is a must to ensure that there are effective public policy frameworksthat can accompany innovation in crypto assets for maintaining the integrity and trust in the financial system. The crypto economy has been highly criticized by some members of the Bank of England for quite a while. Last year in mid-November, Andrew Bailey, the Governor of the Bank of England, had expressed his concerns about the adoption of bitcoin as legal tender in El Salvador. Sir Jon Cunliffe, the deputy governor for financial stability for the central bank, said in the following month that prices of crypto assets could drop to zero.

On Thursday, the report of the FPC talked about financial stability. The committee of the central bank noted that the FPC is assessing the risks to the financial system’s stability and it has concluded that these are currently limited. This is because their size remains limited for now and they are not that connected with the wider financial system. However, the FPC said that if they continue to grow at the same pace, and if they become interconnected with the overall financial system, then these crypto assets could pose a risk to the stability of the financial system.

Since the conflict between Russia and Ukraine began, politicians and lawmakers all over the globe have been discussing, developing, or even proposing laws aimed at regulating and researching digital currencies. The FPC’s statements on Thursday show that the BOE wants to classify crypto assets in the same category as it does traditional financial assets. Not only does the FPC plan on developing a regulatory framework that would govern digital assets, it has also mentioned stablecoins.

The FPC said that a major stablecoin that does not have a reliable deposit guarantee could turn out to be a risk to the UK’s financial system. According to the committee, if they introduce a systemic stablecoin, which is backed through a deposit mad with a commercial bank, it would result in significant risks to the stability of the financial system. All of this talk about crypto has been brought forward because of the Russian-Ukraine conflict and the possibility of the former using cryptocurrencies to evade the tough economic sanctions that have been imposed by Western nations due to its actions.

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