US President Donald Trump has banned the criptomoeda of the Venezuelan government, Petro, by executive order on March 19, reports Bloomberg.
The ban is released as part of a campaign to pressure the Venezuelan government of President Nicolas Maduro. By order, US citizens are prohibited from engaging in transactions using the digital currency indexed to oil.
The ban thwarts the Maduro government's efforts to increase foreign currency reserves. The token offer accepted transactions in dollars and euros, which means that Venezuelan citizens could not participate legally, as there is a ban on the purchase of foreign currency in Venezuela.
The order also authorizes US Treasury Secretary Steven Mnuchin to issue regulations to enforce the executive order. The Treasury Department has announced sanctions against four Venezuelan government officials earlier this year.
According to Mnuchin, "President Maduro decimated the Venezuelan economy and provoked a humanitarian crisis." Instead of correcting the course ... the Maduro regime is trying to circumvent the sanctions through the digital currency Petro. "
The Treasury Department also warned investors in January to avoid Petro, calling it "another attempt to support the Maduro regime, in addition to plundering the resources of the Venezuelan people."
Petro has struggled to find legitimacy and interest among foreign governments. Earlier this year, the Venezuelan government stated that Poland would be interested in marketing food and medicine in Petro, which was later denied by the Ministry of Finance and the Polish Foreign Ministry.
However, Cambodia seems to have drawn inspiration from Venezuela, and is considering its own state-sponsored digital currency, Entepay, reported the Cointelegraph earlier this month.
Source: Cointelegraph
Tags: #cryptocurrency #Petro #DonaldTrump #USA #Venezuela