Quote from: senin on January 21, 2020, 07:34:52 PM

Yes, an interesting situation. The Venezuelan government, represented by President Maduro, has launched an economic war with the United States and its dollars, and now they recognize that dollars are good for the country. Moreover, neither the national cryptocurrency Petro nor the transition to the payment of pensions and other payments in bitcoins saved the Venezuelan economy. Cryptocurrency did not help here, probably due to inept management of the economy.
The problem of introducing high technologies is also raised here. Practice shows that you should not fully rely on them, along with them should be back-up options for conventional technologies. Therefore, do not give up cash.

Venezuela adopted bitcoin/crypto because of TINA (there is no alternative). The case that occurred in the Venezuelan government had to adopt cryptocurrency due to a total economic embargo from the United States. There is no eternal friend and foe that is of eternal importance to Maduro. The policy taken is more political aimed at perpetuating its power amid the shock of the coup from its opposition rather than aiming at improving the country's economic conditions.

One reason why the role of cryptocurrency in Venezuela is displaced by the dollar is inseparable from the reduced economic support of China for Venezuela. As China's growth declines and crude oil becomes abundant after the fall of 2014 oil prices, China has little to gain from relations with Venezuela.

In addition, China is concerned about the Maduro government regime which is not recognized as a legitimate government by many countries in the World. In addition, China is also concerned about the allocation of aid use from China not in accordance with the China strategy (OBOR) as China worries about economic mismanagement and corruption under Maduro's leadership. The intensity of relations between China and Venezuela diminished when the opposition took control of the legislature and America gave full support to the opposition.

Venezuela is now undergoing a strategic partnership with Russia and continues to use the dollar as its currency exchange currency. Trump also began to be careful in dealing with Venezuela because Russia's involvement was very thick, with Russia's largest world oil company Rosneft marketing almost half of Russia's oil production. Rosneft is a large company and has a wide reach, too frontal with Russia could risk unwanted damage to the interests of America and its allies.

So when facing economic problems, crypto is only used as a tool or an alternative currency. When the world does not compactly adopt crypto, how can Venezuela minimize the use of dollars? Means the international world more trust in the dollar than crypto. This trust was formed not only because of the superiority of the American economy but also because of world reserves of 58% in dollars. so the use of dollars is considered an effective and fast solution to cure disease.