Not surprisingly, the U.S. has sanctioned Venezuela's digital currency, which is based on the country's oil reserves, essentially banning it. U.S. President Donald Trump's decision was based on accusations that Venezuelan President Nicolas Maduro was violating U.S. sanctions with the digital currency, known as the Petro.
That is to say, digital currencies, by their very nature, have an objective feature, such as the violation of U.S. sanctions. It has to be like that anyway. This is because what the U.S. calls sanctions actually means that global trade, especially in basic commodities like energy, must be done in dollars and the cycle must be under U.S. control.
The U.S. is wary of two things in the global oil trade. The first of which is oil production out of the direct or indirect control of U.S. energy giants, and the second is oil trade conducted not using dollars.
Venezuela launched the Petro just a month ago in a pre-sale that ended a couple of days ago. Maduro announced that the Petro raised around $1 billion in funding. He explained that 100 million Petros would be primarily identified in the system and presented around 38.4 million of it in the market at $60 per unit.
However, we cannot simply define Petro as a cryptocurrency because it is based on a basic economic commodity reserve. It is a new generation, digital currency in the strictest sense. And similarly, the U.S.'s prohibition of the Petro hardly has economic significance except for its political influences. In fact, digital currency systems like the Petro are more real money than the dollar at the moment.
Earlier this week, a G20 meeting of economy ministers was held in Argentina, where digital currencies were declared a threat to the global economy. This decision was made mainly because the U.S. is rushing to prevent alternative currency systems emerging outside of the dollar. By doing so, it is burying the G20 spirit and pushing protectionism by crossing the limits of all kinds of commercial laws and morals.
At this point, I think developing countries such as Turkey should voice the opposite. On all G20 platforms, all developing countries, and Turkey in particular, should oppose the U.S.'s delusion of protectionism and call on it to end economic sanctions on third countries like Venezuela.
When we look closely at the Petro, which the U.S. has forbidden in a big fuss, we see how it is designed to be a realistic general equivalent. Unlike digital currency systems that have emerged today - cryptocurrencies, bitcoin and bitcoin derivatives, central digital currency, commodity-based digital currency - the Petro is a commodity-based currency and an alternative on which Turkey needs to elaborate and study.
We need to urgently and seriously study the establishment of a system that enables the active use of gold stocks instead of money, with the efforts to attract it to the system by giving interest and profits, and on including this system in payment systems and mutual contracts through legal arrangements under the control of the central bank.
Apart from that, it is also necessary to get rid of the dollar's global crisis-causing pressure. The faster we expand foreign trade and payment systems outside the dollar, the faster we will overcome the pressure of a financial crisis. This is because developed countries, especially the U.S., are exporting their own crises to developing countries with such fiat currencies. Why should we further shoulder the burden of the U.S. Federal Reserve (Fed), which does not know where to turn and continuously produces its own crises.
For central banks, it is now inevitable to develop digital currency systems in addition to physical deposits. This major change will also ensure that the banking system is completely renewed.
Today, the dollar-based monetary system has become a tool for direct political domination by the U.S. and is a historical example of counterfeiting. This system is on its last gasp, which is understandable from the way the Fed operates. The reason for this helplessness is actually the end of the dollar-based monetary system.
If currency systems like the Petro are regulated in terms of price and quantity relation with the commodities they are based on with a transparent global control system, and if algorithms are created to work with other market variables and commodity prices, they will put an end to the crisis-creating dominance of the dollar.
The U.S. has been threatening the whole world, which depends on this failed currency system. It puts a customs wall on products at will while trying to ban financial systems it does not want.
Although such sanctions and prohibitions no longer count for anything, they are still nauseous. Therefore, we have to oppose this lawlessness on all global platforms. The G20 should not be used for U.S. interests and rather should be be a tool for the reconstruction of a fair global system in which markets operate freely.