Media offensive against Venezuela’s crypto-petro currency: between fear and amazement


February 3, 2018 – Fort Russ News – Paul Antonopoulos – Translated from Mision Verdad.

CARACAS, Venezuela – The corporate media not only attend to the line of linking cryptocurrencies with organized crime, issued by bankers who are the ones who really have ties with the mafias, but now that speech is superimposed with an evident fear of the possible success of the implementation of a new financial architecture that allows countries sanctioned by the United States to evade arbitrary blockades.

From modest regional media, to the most well-known international press agencies, they make up an orchestra that only predicts for the Petro scenario to be a failure. All have painted a scenario full of difficulties and strive to accentuate supposed negative characteristics in the Petro.

They even say through the BBC in an interview with Garrick Hileman, that if Petro’s support is in raw materials, they should be safeguarded in a place where a supposed arbitrator certifies that they are available to generate trust and guarantee honesty. Without fear, there is mention of London and New York as possible places of shelter. This almost humorous commentary recalls the way in which England and the United States obliged the other countries to keep their gold reserves in the last century in the name of “the honesty and confidence” that this would generate in their sovereign currencies. Today we all know what happened with all that gold, the repatriation negotiations are extremely complex and are never done for the totality of gold, even in recent times we saw how the US completely rejected Germany’s request for the repatriation of its reserves.

On the other hand, a supposed centralization that Petro would have when being handled by the Venezuelan State is argued. In The New York Times it is said that the Petro contradicts the principle of distributed administration of the cryptocurrencies, comment where they also allude to the Russian cryptorublube. As we could see in the recent publication of the Petro White Paper, where its scope and characteristics are explained in detail, the restrictions that the State will have with respect to Petro are established. The most remarkable thing is that Petros will not be able to emit more than these 100 million that will go into circulation in the coming months. The only attribute that remains in the hands of the Blockchain Observatory is the ability to “mine” the Petros, which initially will be disabled and will be able to decide when and under what terms will be implemented.

The American media intends to use the dogma of the decentralization of cryptocurrencies to discredit the operation of Petro. The use of fallacies is a resource of disinformation and propaganda media at the service of the United States. First: that the Petro arise as a proposal from the State itself does not make it centralized, in the end it will be a cryptocurrency that will work with its own chain of blocks distributed and validated by “Participation Test” as many cryptocurrencies currently do. Second: no one can alter the chain of blocks, nor the State itself, and there are all the guarantees of auditing operations in public domain registries, as is the case with all cryptocurrencies.

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In that same article they also talk about the uncontrolled inflation of the bolívar, but without naming Dólar Today, the cash mafias, the border extraction, the commercial cartelization and the ties with the financing of destabilization from abroad. According to them it is the issuance of bolivars by the Central Bank of Venezuela (BCV) which generates inflation, ignoring a fact that even today’s Dollar admit: that the total of the money circulating in bolivars divided among the Venezuelan international reserves in dollars give a much lower value than published by that page of speculation and exchange fraud. That is to say, to take the dollar to a value of more than 200 thousand bolivars, the BCV would have to multiply by more than ten times the current amount of bolivars circulating in the country.

The central argument of the smear campaign against the bolivar, and now against Petro, seems to be to project the dollar’s problems on inflation, lack of support, uncontrolled issuance, lack of saving capacity and its relationship intrinsic with the crises associated with the debt. It also skips the fact that in recent times the US Congress increases its debt limit every year to avoid being left in default, at least on paper. It is as if you had the opportunity to handle your credit card limit indefinitely: obviously you would never fill it, and you could pay the monthly installments with credit from that same card. But it turns out that Venezuela is the one that is in “selective default” according to the risk rating agencies Standard & Poor’s and Fitch.

They want to give the impression that the national government does not know what it is doing and takes desperate measures. Although the Petro arises in the midst of a voracious economic war, the reality is that the rise of cryptocurrencies in the world is in sharp rise since the credit crisis of 2008, in which banks, the US government and the rating agencies of risk, left in the street evicted many families. Today, it is exactly the same actors who carry out a blockade against our country. The distrust in the world monetary system that caused the US and its economic policy, prompted the creation of a free exchange mechanism of the domination of the banks and that government, that is, a currency that can not be dominated by the US and the financial system global.

According to an article by Foreign Policy, it seems that beyond the fear of Petro and Cryptorubber by the main banks and the US, they are more concerned about the popularization of “block chain” technology. They comment that currently even private companies are using subyever technology in cryptocurrencies for many trade operations, even though they continue to use traditional currencies. In this way they “skip” the need to use intermediaries, lower costs, do not resort to payment instruments such as SWIFT and also take their records out of the traditional system. Those capabilities that are already in use by transnational private companies are very attractive, and they are just the main reason for the “block chain” to be chosen as the base of the Petro. The main concern of traditional actors is that: that their controls are no longer effective because nobody would be interested in using their channels and services.

They also attack the bolivar because people are buying cryptocurrencies and other assets to avoid devaluation, but the reality is that the same thing is happening all over the planet: the recent policies of labor impoverishment and inflation in a large part of Europe and the US have meant that people resort to cryptocurrencies to save. Even knowing that here in Venezuela the phenomenon of induced devaluation is much more marked, it is still within the “spirit of the time”, although in this case the policies that generated those conditions have been imposed from outside the country.

While attacks continue to arrive from local and international media alike, the general feeling among the population is one of expectation rather than defeat. Since the publication of the Petro White Paper, social networks began to talk strongly about the pre-sale and the possibilities of acquiring Petros in the digital exchange houses in the secondary market in bolivars. From outside the country the thing is not different: private investors will not hesitate to invest in a cryptoactive that is limited to 100 million units and has 5 billion barrels of oil as support, in addition it will be sold at a discount to the first ones come.

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