Venezuela, which is experiencing hyperinflation, is issuing a new unit of currency to replace its current currency. The new currency will be backed by Venezuela’s own cryptocurrency, the Petro, which is supposedly back by oil.
However many experts say that the Petro is not backed by oil and that its not even really a cryptocurrency. If this is the case, then the new currency is not backed by anything and could evaporate in price just as fast as the old currency. In the end, this might actually draw people to Bitcoin, as it will be viewed as a more stable and trusted alternative than the national currency in these countries. Eventually the government may have to issue a currency that is actually backed by Bitcoin if their own national cryptocurrency does not hold up. If there are many third-world countries that do this, it would be a major boost for cryptocurrency and its usage in the world.
