The idea of having a government backed cryptocurrency seems to go right up against the basis of why cryptocurrency was created in the first place. Most do not believe that a government backed cryptocurrency should even be considered crypto. Venezuela has recently stated that they will be releasing just that, and many people are not happy about it. The President of the country that is currently economically in shambles, Nicolas Maduro, has stated that his plan to issue a government backed cryptocurrency will help to prop up the economy.
The goal is for the currency to be backed by the reserves that the country has in oil, gas, gold and diamonds. The country has planned to issue as much as $5.9 billion in cryptocurrency but many critics are skeptical of this plan. Given that the country is in such bad shape, many think that this is just apply by the president to gain some popularity and help the people feel secure about some sort of change. Those who have looked over the plan believe that it will not work by any means.
With the value of traditional cryptocurrencies being based on the network they are created on, having a currency with actual intrinsic value is not even a cryptocurrency at all, it is something entirely different. There is no real way to back this currency with the resources that Maduro is claiming will back it. The people of this country need some real way to fix their economy given the massively high rates of inflation and economic failure. The hopes are high that some solution will come out in the coming months to help the people who need it the most. Until that time, many are waiting to see how this cryptocurrency scheme will play out.