Cryptocurrencies, also known as virtual currencies, have gained ground in recent years as they have become a mechanism that generates income for users or companies that perform or transact transactions with them. One of the main advantages of these cryptocurrencies is that they are decentralized, i.e., their value fluctuates according to the supply and demand generated in the market and they are not regulated by any institution and/or government.
By virtue of the above described different countries have seen with good eyes the growth of cryptocurrencies and have made proposals to create their virtual currencies, among the countries we can mention China, Russia, the United States and the European Union. In 2017 Venezuela became the first Country to create its own cryptocurrency called PETRO (PTR), the creation of this cryptocurrency represents an important turning point as it is the first digital currency to be created by a Government and in addition its value is backed by four high value natural resources, oil, gold, iron and diamonds.
China currently has in test mode the DIGITAL YUAN, as they are conducting pilot tests with electronic payments, it is a legal payment that is authorized by the Chinese Central Bank and these payments will be backed by deposits of the national currency, the Yuan. As part of the tests being carried out, the authorities of the cities of Beijing, Chengdu and Suzhou have decided to distribute several million dollars in the equivalent of the Digital Yuan in public draws held in recent months. Currently this digital currency can only be used to purchase merchandise on JD.com, which is a digital store and a partner of the People's Bank of China.
Based on the fact that cryptocurrencies are decentralized, digital currencies, which in the case of Venezuela and China have already placed in their domestic markets, from my point of view would function as a stablecoin, a stable currency that allows them to compete in the digital market. In Venezuela, particularly the PTR, as its value is anchored to the price of a barrel of oil, can be an escape route for those people who do not have the means to acquire another currency and can invest in this digital currency to avoid the devaluation of their bolivars due to the hyperinflation in which Venezuela is submerged.
Although it is really risky to invest in a virtual currency of which not much is known since the PTR is under government control, there are those who have invested in the PTR and today state that they own more than double what they invested in bolivars when they made the first purchase. The truth is that the countries of the world have already realized that virtual currencies are the future of the world economy and have started the creation of their virtual currencies.
