Dear MEL Topic Readers,
Venezuela unveils virtual currency amid economic crisis
Digital money. Cryptocurrency is a form of digital money, like bitcoin, that is designed to be secure and anonymous. It uses cryptography, the process of converting readable information into an almost uncrackable code, to track purchases and transfers. Though it can be exchanged with hard currency, neither the face value nor the exchange rate is guaranteed.
In fact, the value of bitcoin fluctuates too drastically for ordinary households or businesses to switch from hard currency. It is rather speculative than practical these days.
Now, devastated by the triple-digit inflation, Venezuela’s economy is on a brink of implosion. Printing value-less banknotes is no longer an option. So, the government came up with an idea to create a cryptocurrency backed by its valuable natural resources, such as oil, gas, gold and diamond wealth.
Will that government-created digital money be trusted and used by their people, businesses, and international creditors? What difference will it make from the hard currency that is valued less and less day by day?
Enjoy reading and thinking if you’ll be interested in using the oil-backed digital money.
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