Hi delegates!
We're less than a week away from BMUN and we're so excited to meet all of you soon!
This article came out in the Washington Post a few days ago regarding Venezuela's attempt at fighting its inflation by launching its own cryptocurrency (what a great amalgamation of both our case studies!)
So far, Venezuela has been able to raise almost $1 billion but what are your opinions on this "Petro" coin?
Article:
"Venezuela launches the ‘petro,’ its cryptocurrency" by Rachelle Krygier
See y'all soon!
Sherry
We're less than a week away from BMUN and we're so excited to meet all of you soon!
This article came out in the Washington Post a few days ago regarding Venezuela's attempt at fighting its inflation by launching its own cryptocurrency (what a great amalgamation of both our case studies!)
So far, Venezuela has been able to raise almost $1 billion but what are your opinions on this "Petro" coin?
Article:
"Venezuela launches the ‘petro,’ its cryptocurrency" by Rachelle Krygier
See y'all soon!
Sherry
As the country of Botswana, we take the creation and utilization of cryptocurrencies very seriously. The instablization of these currencies as well as the lack of framework and moniterization offer a level of uncertainty as to the success of this futuristic wallet. In terms of new advancements in the Venezuelan “petro,” our country of Botswana, has mixed feelings. Our policy supports the technological advancements of nations, albeit we note that the developers may have a lack of knowledge and research on cryptocurrencies. Brazil-based developer for the Ethereum Foundation, Alex Van de Sande, stated that “It honestly sounds like they don’t really understand how any of it works.” The rapid and inexpensive release of the “petro” makes Botswana skeptical of the success of the currency.
ReplyDeleteNoting that the Venezuelan economy has always been a fluctuating and inflating market, Botswana questions the motive on taking on such a futuristic and complicated type of currency. Despite their efforts to raise so much money for this operation, Botswana believes that there must be international framework for the new development of currencies such as “petro” or bitcoin.
The questions that scare our country off from this advancement is how this “petro” will be used on an international market. Will the currency follow the same inflation and fluctuation pattern of the Venezuelan economy? Who will regulate the trade of these coins and also what technology is in place to stop hacks and robbery? Also, since Venezuela is a hub for black market economies due to skyrocketing prices, who is to say that this coin won’t crumble the value of their formal currency even more than it already is.
We would suggest extended research and an international forum so countries can express their own concerns and pose questions if their country wishes to follow a similar model. Lastly we would like to state that as more cryptocurrencies emerge, it will be harder to regulate, making the possibility for black market purchases more successful.
The concept and idea of petro currencies is very fascinating and with the manner in which technology is advancing today, cryptocurrencies may be our future. Germany is open to all forms of cryptocurrencies and the use of cryptocurrencies. However, the citizens who decide to use them will be taxed as though the cryptocurrency is physical money. Nevertheless, there is some concern with petro currencies specifically. Venezuela is one of the poorest countries yet the richest all the same. Venezuela has an incredible amount of oil, making the petro possible. Yet Venezuela is considered one of the poorest nations in South America because a very select few hold all the money while the rest of the population has nothing. Germany would like to know how the petro will help with inflation if those same people still hold all of the oil and thus all of the money. Additionally, considering the petro is regulated by the government and the government of Venezuela is notorious for its corruption. Once the petro is assuredably stable Germany would like to invest. However until this currency is more stable, Germany will withhold. In addition, while Germany acknowledges the value of oil, a more sustainable investment such as solar of wind is more of what our country is looking for.
ReplyDeleteThank you for your time.
-The Delegation of Germany
The delegation of Chad recognizes the "petro" coin, the "first cryptocurrency officially launched by a government," as an attempt by the Venezuelan government to boost their economy, which is arguably better than letting current matters stay at the same level. Their willingness to pioneer a novel course of operation is to be applauded and admired, though the rapid execution of this "solution" without the necessary research is slightly questionable.
ReplyDeleteWe definitely have our doubts about the success of the endeavor, as President Maduro and his administration has shown to be unreliable and unstable in the past when it comes to economic regulation, but are interested to see how this "game" plays out, as it could pave the way for other countries to implement similar systems in the future, providing another method for building up a developing or struggling country's economy. We hope that the new currency would be stable enough so that each individual may have an equal chance of investing in such, which is not the case with Venezuela's current oil wealth. We also agree with Botswana's previously mentioned point that there should be an international framework for new currencies such as "petro," as cryptocurrencies require an in depth understanding of the mechanics behind its function and how it operates differently from normal currencies, giving it the potential to be beneficial or detrimental to the economy.
The Petro is Venezuela’s modern day attempt at a centuries old economic issue. It’s an interesting proposal, but the fact that it has gained ICO investment does not indicate success in it’s future. Looking at other cryptocurrencies offered in the past, like the Etherium foundation’s project DAO, many have failed after the ICO stage. DAO for example, garnered around $160 million in investment, only to result in a hard fork and a massive drop in value. The United States believes that the cryptocurrency markets are too difficult to regulate to avoid massive drops and occurrences like this. Allowing them to self regulate at least removes the liability from the government to adjust and retain value. However, Venezuela, in creating a government regulated currency, brings to themselves a new risk of maintaining another volatile medium along with their highly inflated bolívar. This is, as the U.S. believes, too much a risk for a country and trading power to assume. Although many believe that this effort is gaining traction and the billion dollar investments they have received are enough to revitalize the South American country, it is unclear whether or not Venezuela will be able to correctly utilize the new funding and history does not provide a strong case. It seems furthermore, that in creating a cryptocurrency, Venezuela is attempting to capitalize on black market trade to push their economy. Cryptocurrency, headlining for its untraceability, can be used to provide a platform for trade that would not occur in broad daylight. It is possible that in desperation, Venezuela hopes to attach to the black market trade and use it in order to progress their own economy.
ReplyDeleteThanks for the article honorable chair we hope to use it in our speech.
ReplyDelete~Delegation of Finland