The Venezuelan authorities will support the launch of a decentralized stock exchange with the aim of circulating digital versions of traditional financial assets on it.
This week, President Nicolas Maduro laid the foundations for the future trading platform by announcing the creation of the "Anti-Blockade Law on National Development and Human Rights Guarantees". It describes several approaches to stimulating a national economy that is under pressure from American sanctions.
According to Maduro, the law encourages the use of cryptographic currency, and not just national Petro, as a means of protecting the financial sovereignty of Venezuela. "The anti-sanction law is the first response that will give new opportunities to Petro and other cryptocurrencies, national and global, in domestic and international trade, so that all cryptocurrencies in the world, both publicly and private, can be used," he said.
Soon after, the launch of the "Decentralized Stock Exchange of Venezuela" was announced. According to the media, the notice was published in the official newspaper of the Venezuelan government. According to the developers, all contracts used by the stock exchange are public and available for audits. In addition, platform users will be able to hold their own private keys and tokens.
The Exchange will use the Ethereum Blockchain and tokens of traditional assets will be token by means of ERC233 and ERC721 contracts, depending on the specific case. The developers also state that the exchange will operate independently of the traditional financial system and will support a peer-to-peer secondary market.
After the initial testing, which will last 90 days, the local securities market regulator will decide on licensing the trading platform. The exchange must report to the authorities on a daily basis.