Rogue states have long been attempting to inveigle themselves into the good graces of anyone with money really. To this end, they have been largely successful in obtaining some extra financial heft from similar autocratic regimes. Within hours of its launch, Venezuela’s new cryptocurrency, the El Petro has arguably amassed millions of worth.
The case of El Petro is particular. It may be safe to say that it is quite likely that a newly minted coin is likely to fetch juicy investment. Still, it is difficult to say whether the El Petro really amassed millions of FIAT money behind it upon launch. It is plausible that regimes that are chummy with dictators would seek to support them and sow additional discord in order to keep the United States, for example, busy in their backyard
Understandably, the El Petro may never become a currency that will be widely used in crypto circles. By all measures, it is a failed-currency, which reflects the state of autocracy that has ruined the whole of Venezuela and brought it to an absolute financial collapse.
With the just recently announced ban of all Venezuelan cryptocurrencies, the El Petro has lost a market it has not even entered yet. Not only that, but as regulation intensifies from everywhere, the things that the El Petro will fund fall under the direct hit of central banks and financial watch dogs the world over.
El Petro is a perfect example of what would happen to any state who thinks that they can skirt international sanctions in order to fund their inhumane regime. However, there are more ways to be creative when feeling heat from regulators. For starters, North Korea has been rather successfully trying to fund its operations.
North Korea has also been involved in a spate of heists in South Korean crypto currency exchanges and elsewhere. With the onset of attacks, it has been painfully obvious that any sort of unregulated activity should be met with swiftness on the part of the law.
With this in mind, it is quite understandable that North Korea and Venezuela are a no-no investment when it comes to cryptocurrencies. Anyone investing in those tokens may actually be looking to launder money. However, it is unlikely that anyone can claim real FIAT money with cryptocurrencies as El Petro.
The plain fact of the matters is that people know that they are likely to be worth zero in coming months, if not hours. The general hard stance against rogue regimes will continue in the crypto world, and thus a more united front will come against rogue traders and states.
However, there is more to this overall offer. As mentioned before, it is very likely that North Korea and Venezuela could simply draw funding from third parties, which are interested in the discord and geopolitical danger that these countries may pose.
With this in mind, nipping such cryptocurrencies in the bud may be the only working way to home in their rein.
Why are rogue currencies so dangerous?
In simple words, rogue currencies may topple the still wobbling acceptance and recognition cryptocurrencies have been trying to win from the mainstream. With this in mind, anyone who holds crypto assets dear will have to stand against the unfairness of having any sort of crypto chunk floated as a viable investment.
More, all investments that are illegal should be banned and regimes seeking to prop their ailing finances via any means possible should be hit even harder. Cut off from international trade, Venezuela can still be harmful to the crypto world and its own people under the rule of the autocratic President Maduro.
However, legitimizing cryptocurrencies from such places is even more dangerous. Give them clout and Mr Maduro will use his new riches to inflict more pain and suffering and the cryptocurrency that is El Petro may become just a buffer for a host of nefarious and outlawed activities.
Everything from the Bank of England to the Internal Revenue Service (IRS) in the US, and China as a whole have been hawkish in the face of illegal trade involving cryptocurrencies.
The simple fact of the matter now is that rogues may no longer hide in the shadow. As the world is drawing closer to a final solution for cryptocurrencies, so people who are engaged in similar activities should know that rogue cryptocurrencies are no respite. Regulators will pry open their hidey-boxes and let light shine on their nefarious activities.
With the world now poised to embrace those digital assets, we should all prepare ourselves for the oncoming support for digital money and associated assets.