Re:Trump Issues Action Blocking Venezuelan Government Crypto...
by smokeyj on Monday March 19, 2018 @04:24PM
(#16622744)
What distressed countries like Venezuela lack is trust, making the prospect of a responsible central bank a pipe dream. I see asset backed certificates being more capable of facilitating trade than unsecured IOUs. Reduce the level of trust required to trade, trade goes up. In that aspect Petro coin will be very interesting. I'm smelling a regime change in Venezuela's near future.
This is true and, in fact, used to be the case in the US with how the banking system was originally set up. In the old days each individual bank would issue certificates ("notes") as claims against their own deposits. Currently all our notes are Federal Reserve Notes which are from the central banking authority. But back then, every bank issued their own notes.