The Petro, by most accounts, isn’t backed by oil reserves – in actuality it’s backed only by a discredited government’s promise, launched in a region that has an unfortunate history of political corruption and currency manipulation.
In Latin America’s emerging markets a lack of trust in financial and political institutions has long hampered financial inclusion, political participation, and entrepreneurial ambition.
For this region, blockchain’s distributed and immutable ledger could go a long ways towards building faith in banking, the safety of personal savings and property, political processes, and the plausibility of entrepreneurial pursuits.
Blockchain’s far-reaching potential for the region
The eagerness of many early adopters across Latin America may be attributable to the fact that the region could stand to gain so much from blockchain.
Hence, 2017 saw a 1,000 percent rise in crypto transactions in Venezuela, and a 450 percent increase in Brazil amidst political turmoil.