Donald Trump Bans Venezuelan Cryptocurrency Petro


Donald Trump bans Venezuelan cryptocurrency Petro, as he has signed an executive order barring US citizens from investing or undertaking the transaction on tokens or digital currencies linked to the Venezuelan government.

20 March, AtoZForex Yesterday, the President of the US, Donald Trump, has inked an executive order that bans Americans from using or investing in the petro, the oil-backed Venezuelan cryptocurrency.

Donald Trump Bans Venezuelan Cryptocurrency Petro

Petro is an oil-backed Venezuelan state cryptocurrency that was released in both a pre-sale and an initial coin offering (ICO). The initiative to create such digital currency has been announced by the President of Venezuela Nicolas Maduro back in December 2017. The white paper of the project has been released on the 30th of January. The document explains that the idea for the petro came from Hugo Chavez. Mr. Chavez has presented petro as a “strong currency backed by raw materials.”

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US President Donald Trump has signed an executive order prohibiting US citizens and residents from investing or undertaking the transaction on tokens or digital currencies linked to the Venezuelan government.

The order almost explicitly addresses petro, while some of the speculators have been stating that petro is used to undermine sanctions. Moreover, some of the online reports stated that the US Department of Treasury has warned that investment in the Venezuelan cryptocurrency could constitute a breach of US sanctions.

Petro criticism

In January 2018, Venezuelan parliament has invalidated the oil-backed cryptocurrency. The opposition-led officials have called the petro an illegal attempt to mortgage Venezuelan oil reserves.

Later on, in March,  one of the opposing lawmaking bodies in Venezuela has ruled out that the national cryptocurrency Petro is illegal in the country. The officials have based their decision on the domestic law articles.

Venezuela’s Asamblea Nacional has announced that it believes the petro cryptocurrency is unconstitutional. The group of politicians has also stated that the cryptocurrency can appear as a threat to potential investors. In its public statement, the group has criticized the sale of petro, which has reportedly raised $735 million. The lawmakers mentioned that this can simply be a symptom of the country’s current crisis.

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