Donald Trump has today signed a presidential order, banning United States citizens from making purchases of Venezuela’s state-backed cryptocurrency, according to Bloomberg News.
The Petro – thought to be the world’s first sovereign cryptocurrency – is legally endowed with purchasing rights that grant access to various products and services offered by the Venezuelan state, with each Petro thought to be backed by one barrel of oil production output.
BAN NOT EFFECTIVE IMMEDIATELY
With the Petro having raised over $700 million USD on its first day of sale back in February, Venezuelan president Nicholas Maduro is thought to be seeking to raise up to $6 billion via the country’s first sovereign crypto-currency in what many interpret to be a new economic experiment as the South American nation struggles with rampant hyper-inflation and collapsed oil prices.
The Trump Whitehouse’s move against the Venezuelan crypto-currency is unlikely to take effect immediately, as the order itself is effectively amounts only to a directive at this stage.
Treasury Secretary Steven Mnuchin has been instructed to implement the necessary legal measures to ensure that no citizen of the United States can participate in future sales of the Petro cryptocurrency – and likely any other forthcoming state-backed crypto-currency due to be issued by the Venezuelan government.
Venezuela and the United States have experienced a long deterioration in their relations dating back to the arrival of the avowedly left-wing president Hugo Chavez on the political scene in the late 1990’s.