Quote:Venezuela sets a dangerous example with the petro. Developers of legitimate cryptocurrencies prioritize decentralized, secure, and transparent transactions. Instead, this cryptocurrency presale provides no real service for its international holders, and the worst is still yet to come. The Venezuelan government has announced plans to release a second cryptocurrency linked to gold, which will no doubt be just as worthless as the petro.

Although Venezuela was able to raise money in its pre-sale, speculators will quickly find the petro has no long-term value. Such realization and its aftermath may unfortunately contribute to the idea that cryptocurrencies facilitate fraud. Just as concerning, the power of sanctions is in danger of eroding – other countries may feel emboldened to act more aggressively if economic sanctions can be thwarted through cryptocurrency sales. A hard line must be drawn on the development of empty cryptocurrencies that are ultimately a form of national illicit debt relief, or else serious and legitimate adoption of cryptocurrencies will be seriously stifled.