(TFC) – Amid sanctions, a failing economy, international pressure, and low oil prices, the Venezuelan President has announced his nation will create an oil-backed cryptocurrency.
Sanctions spearheaded by the United States have taken their toll. Maduro’s handling of the crisis and his reliance on force has handed his opposition all the ammunition they need to paint him as a dictator with no idea of how to look out for the Venezuelan people.
This move certainly challenges that perception. Maduro has latched on to an idea the western powers are terrified of: cryptocurrency. It’s high tech, it’s new, and it isn’t well understood by his adversaries.
“Venezuela is announcing the creation of its own cryptocurrency. It will be called The Petro. It will allow us to innovate towards new forms of international finance for the economic and social development of the country,”
A state-backed crypto has left many open-mouthed with shock. To many, cryptocurrency was the realm of the rebel. It was the domain of those opposed to traditional economic systems.
“Petro” will be backed by Venezuela’s massive oil reserves. While crypto has been booming, oil has been sliding. A fusion of these two markets is a move few would’ve predicted coming from the South American nation.
From a foreign policy chess game standpoint, the Petro becomes a new piece on the board. It’s a piece that involves uncertainty. In foreign policy, certainty is more important than anything, even morality. Maduro may have found a way to keep the west in check for at least a while.