Hawk or dove? Bitcoin is forcing central banks to take sides | Howard Davies

Love them or hate them it seems cryptocurrencies and the blockchain are too big to ignore

A few days ago, President Nicolis Maduro of Venezuela announced that his government had launched the petro, a new state-sponsored cryptocurrency. He claimed that $735m (529m) worth of the new currency had already been sold, though observers are sceptical, unless state entities have been obliged to buy them. Even they will find it hard to do so, however, as the technology platform on which the petro will be traded has not yet been confirmed.

Related: Venezuela's new bitcoin: an ingenious plan or worthless cryptocurrency?

An initial coin offering (ICO) is when a new cryptocurrency company offers a portion of its tokens for sale all at once to jumpstart trading, raise funds for continued development and earn a return on investment for its founders.

Related: Bitcoin: what have experts said about the cryptocurrency?