Venezuela's crypto-currency: salvation or scam?

IT “WILL be an instrument for Venezuela’s economic stability and financial independence”, promises a white paper published by the country’s government last month. Venezuela, the issuer of the world’s least stable currency, proposes to issue its most trustworthy in the form of the petro, a “sovereign crypto asset backed by oil”. A private sale of this promising new asset started in February. The government plans to offer it to the public on March 20th.

In one sense, the idea is as ludicrous as it sounds. Only the most credulous investors will trust a currency issued by Venezuela’s socialist regime, which has debased the bolívar, expropriated private enterprises, ridden roughshod over the country’s constitution and faces sanctions from the United States and the European Union.