Petro, a Venezuelan government-aided cryptocurrency has been banned by the US President Donald Trump on March 19, as reported by Bloomberg. The executive order comes as part of a campaign in order to pressurize President Nicolas Maduro and the Venezuelan government. According to the ban, no citizen of US is allowed to engage in trades involving the oil-indexed digital currency.
The government under Maduro was looking forward to boosting foreign currency reserves, but the ban frustrated the efforts and put an end to it. The token is only accepted in US Dollars and Euros based transactions.
The unnoticed currency Petro has seen a rocky path looking for legitimacy and attention among foreign governments.
Mike Pence, along with President Trump signed an Executive order to take further steps in order to stop Maduro regime’s attempt to circumvent US sanctions with the issues of digital currencies.
Cambodia has taken some inspiration from the Venezuelan government and has considered introducing its own state-sponsored digital asset. This currency will be called Entepay as reported by Cointelegraph at the beginning of this month.
The US Treasury Secretary, Steven Mnuchin now has the authority to issue regulations to enforce the executive order because of the ban.
Steven Mnuchin says:
“The Maduro regime is trying to circumvent the sanctions through Petro instead of correcting course. President Maduro decimated the economy and triggered a humanitarian crisis”
The department had also warned investors further to avoid Petro, calling it “another attempt to prop up the Maduro regime, while further looting the resources of the Venezuelan people.”
In mid-February, Venezuela’s Vice President, Tareck El Aissami had announced the start of the pre-sale for Petro which would brighten their future. He is also accused of drug trafficking and aiding members of Hezbollah, a militant group based in Lebonan. Due to this, there were a lot of opinions and speculations claiming that the Petro was not oil-backed.
John Leonard, a Twitterati says:
“Investing in Petro, a Cryptocurrency of the Venezuelan Government, is the same to give money to Terrorists and Dictators.”
The US Vice President, Michael Richard Pence told in a speech at Organization of American States on Wednesday that he will pressurize Maduro’s government regarding these speculations.
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