Opinion: Real Reasons Behind the Creation of El Petro

February 12, 2018

Current Venezuelan currency, bolívar, is one of the most inflationary ones in the world, but this is not the only problem of the Venezuelan people. Growing migration and scarcity of basic products are some of the consequences of an economic mismanagement that goes beyond the international sanctions. These sanctions have only prevented the President Nicolás Maduro from using traditional financial instruments, but the consequences have been continue to worsen.

Mauricio Cárdenas, the Minister of Finance and Public Credit of neighboring Colombia said:

"The Venezuelan economy is affected by much more fundamental reasons that have to do with the permanent attack on the private sector, the private initiative and the entrepreneurs in Venezuela."

Cárdenas said that the Venezuelan economic crisis is associated with the poor management of public finances and national currency. Also the unsustainable budget deficit caused the hyperinflation of bolívar.

Reasons behind the creation of El Petro announced by President Maduro are a smokescreen that underlies real problems that are deteriorating the Venezuelan economy.

Cárdenas insists that Venezuela has been managed badly. Creation and integration of El Petro into that economy will not solve the problems that afflict Venezuelan economy.

Beyond the economic problems, a cryptocurrency created by the Venezuelan government may not have enough credibility. Many people in the economic world wonder, if they were not able to manage the national currency and made bolívar hyperinflationary, how can they handle a cryptocurrency?

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