More and more countries are struggling to launch their own cryptocurrencies. Against this backdrop, and given the economic worries, Venezuela is trying to meet petro-coin expectations.Venezuela launched the petro currency in 2018 in response to the massive rise in inflation and economic difficulties in the country. But the model is struggling with many concerns.Venezuela’s government still insists that the token trades at $ 80 while it can be found in the free market at $ 8. Repeated attempts by the government to integrate the country’s economy have so far failed. This included, for example, trying to define the token as the only possible payment option when buying passports or paying vacation money in public. There is even a state-introduced own wallet in the form of the so-called PetroApp.
The price differences could cause dissatisfaction among citizens for a good reason. Because they would have to accept dramatically higher sales prices due to the government’s price target.Other countries are still following Venezuela’s example. China, for example, has been testing a digital yuan for some time and could avoid typical beginner mistakes based on the Petro model. A limited rollout would be a possible approach to prevent serious functional problems.