State-Owned Cryptocurrencies vs National Fiat Currencies

The world with cryptocurrencies slowly but surely starts to resemble the world without them, with establishments around the globe displacing step by step the idea of why Bitcoin was created in the first place.

As more and more countries open up to the idea to utilize block-chain technology and introduce its own cryptocurrency, the vigilant mind gets into a hectic state and starts asking internal questions among which one stands out:

Is the establishment embracing the idea of cryptocurrencies or is it just silently killing it, slowly turning cryptos into new-shapes fiat currencies?

There are many reasons for asking this question, the latest being an article in the Forbes that stipulates American people are forbidden from any kind of participation regarding the cryptocurrency issued by Venezuela, the Petro /PTR/, as stated by Trump’s Executive Order 13827.

Restricting Freedom or Clamping Down on a Rouge Regime?

There is no point delving into details how bad the Maduro regime is and how Venezuela treats its people, but it is a well-known fact that to effectively kill a currency, all it takes is to prevent its circulation. In other words, the economic sanctions against the country reach into the realm of its cryptocurrency, making no distinction between the Petro and the Peso as both are “created” by Venezuela.

By prohibiting American citizens from using PTR, Trump administration is looking to obstruct the free flow of the newly-created cryptocurrency, albeit by taking the path of least resistance, as instead of placing sanctions on entities trading with PTR, even prohibit exchanges from dealing with the oil-based currency of the Maduro regime, the administration in the US is seeking to penalize the people.

And besides, if a cryptocurrency is associated with political regimes, more or less it turns into a tool for achieving political aims, thereby losing the original Bitcoin idea i.e. to provide freedom and protection from fiat currencies issued by the central banks around the world, which have wholeheartedly embraced the printing money concept in the recent years.

From another point of view, any country that is looking to introduce its own digital currency is effectively using the block-chain technology to eliminate cash circulation in the system, an old idea that created tensions when initially appeared and which is now sneaking back in under the public radar, again pointing out that the original Bitcoin idea is being replaced in a subtle way.

“He who controls the money supply of a nation controls the nation”, James A. Garfield, President USA / March 4, 1881–September 19, 1881/

History repeats itself, as everything new seems to be a well-forgotten past, albeit under different circumstances, but the path of prohibition and restriction is not the path to expansion. Unless expansion was not in the cards in the first place.