The South American country of Peru has decided it is time to enter the world of cryptocurrency. It plans to launch its own digital currency, PeruCoin, as an official state cryptocurrency. It becomes the second country on the continent to launch a cryptocurrency behind Venezuela and the Petro currency of that country.
The goal of the new cryptocurrency is to see a further adoption of the crypto between the population and the name was chosen specifically to attract more use among citizens. Currently, only around 0.7% of Peruvians own a portion of digital currency. The country has collaborated with Bits2U, a Peruvian cryptocurrent mining company, to create PeruCoin.
Each PeruCoin will have a fixed value of $ 10. It will be based on ERC20, the Ethereum protocol, and will be financed through an initial coin offering (ICO) to be offered by Bits2U. The company plans to install mines across the country to specifically extract the currency, but has not indicated how many mines could be operational.
The cryptocurrency of Venezuela is already beginning to make its way into the crypt space, fueled by a decree from the president of the country, Nicolas Maduro, according to which several industries must use Petro to do business with the country. For example, oil purchases must be made through the crypt. This will apply to all sectors, from airlines to shipments, which are based on the country's oil supply. Also, any Venezuelan who wants to apply for a passport must pay taxes in Petro. All banks in the country are obliged to also accept the digital currency.
The idea of a state-supported cryptocurrency is not necessarily welcome. The main reason the cryptocurrency was born was to offer a peer-to-peer cryptocurrency that did not require government intervention. The idea of a cryptocurrency supported by a government that has a "fixed value" of $ 10 asks how the value of money will be maintained as economies are constantly in a state of flux.
Peru's decision to allow Bits2U to develop money should also be seen as a potential red flag. The company clearly states on its website: "We provide an online platform that will double your investment in a few months." The extravagant statements of extraordinary returns are almost always a sign that the company must be regarded as a potential source of danger.