Trump Released an Executive Order Banning Venezuelan Cryptocurrency Petro within US

President Trump issued action prohibiting the purchase, trade or financing of Venezuela’s ‘Petro’ cryptocurrency.

President Donald Trump has issued a ban on all US purchases of the Venezuelan cryptocurrency ‘Petro’.  The executive order was signed on Monday, March 19, 2018, to prohibit purchasing or trading any digital currency from Venezuela and also imposes additional sanctions on Venezuela for attempting to bypass existing economic restrictions.

trump words

The executive order states:

All transactions related to, provision of financing for, and other dealing in, by a United States person or within the United States, any digital currency, digital coin, or digital token, that was issued by, for, or on behalf of the Government of Venezuela on or after January 9, 2018, are prohibited as of the effective date of this order.”  

Venezuela’s President Nicolas Maduro launched the cryptocurrency in an effort to salvage his country’s failing economy. It was announced that the Petro would be backed by one barrel of Venezuelan crude oil per token, in the hopes of leading the country out of an economic crisis that has spiraled beyond control.

Maduro claimed via his Twitter feed that on its first day of pre-sales of the Petro cryptocurrency had raised $735 million US.  Since that time, Maduro has claimed that pre-sales of the digital currency token have now raised $5 billion US. Venezuela’s cryptocurrency superintendent, Carlos Vargas, has claimed that 83,000 individuals from 127 different countries participated in the pre-sale.

If that claim is true, it would make the Petro the most successful ICO in history by a large margin. However, his claims are unsubstantiated with no evidence of any funds changing hands. It should also be noted that no buyers have received their tokens yet.

Venezuela’s democratically-elected national Assembly denounced the Petro digital currency, declaring it ‘illegal’ under domestic law. Venezuela’s Asamblea Nacional (ANC), a group of politicians opposed to President Nicolas Maduro declared on March 7, 2018, that the release of the petro was an act of rebellion, intended to enable the country to avert Western sanctions.   

David Jaramillo, an engineer in computer science and blockchain entrepreneur said in an interview:

The Petro, therefore, will allow Venezuelans to carry out financial operations with other countries and even among the inhabitants themselves, without having the controls or warnings of the United States, which cannot impose its rules.” *

*translated from original transcript*

Unfazed by the US ban on the Venezuelan cryptocurrency, Maduro still believes he’s on the right track, posting this tweet onto his Twitter feed on March 19.

*translated from Nicolas Maduro’s Twitter feed*

The US ban on the Petro cryptocurrency stifles the Venezuelan government’s attempts to increase its foreign reserves via a digital token. At this time, the Venezuelan economy faces hyperinflation, along with the potential collapse of its currency. The country is also faced with food shortages due to pricing controls rampant across the country, coupled with high unemployment levels.

The European Union also imposed economic sanctions on Venezuela over its opposition to the country’s autocratic government.

Disclaimer: Cryptocurrencies are a highly speculative risk and this article is not a recommendation or endorsement by The Scope Weekly or the writer to buy, sell or trade in any digital currency. As every person’s financial situation and risk appetite is unique, advice should be sought from a qualified professional before making any financial decisions. The writer has no position in any cryptocurrency as of the date of this writing.

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