Venezuela has recently become the first nation to institute a sovereign cryptocurrency in the form of the "Petro". The oil-rich South American country continues to face severe economic sanctions imposed on it by the U.S. due to a long history of tense relations, primarily due to Venezuela's socialist government. The Venezuelan government claims that the Petro is designed to address the rampant hyperinflation and devaluation that has been going on for years, while critics argue that it is little more than a last resort cash-grab. The ongoing political and economic crisis within Venezuela is still uncertain, and it remains to be seen whether or not an oil-backed cryptocurrency will be effective.
http://www.bbc.com/news/business-43133853
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Andres Duarte '65 has really found his niche in the Venezuelan oil market and has been extremely successful. However, he made it clear that the country is essentially crumbling around him due to the crippling hyperinflation. When he visited campus last semester a few students and I had lunch with him and we asked him how he felt about the rise in the prevalence of cryptocurrency. He seemed to feel as if it would really be a viable option to combat the inflation that is tearing their economy apart. So, it will be interesting to see if Venezuela takes steps towards further integrating cryptocurrencies into their economy.
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