Venezuelas Petro cryptocurrency faces controversy

Thursday 22 March 2018 10:02 CET | News

On March 19 the US President Donald Trump issued a trading ban on Venezuela’s Petro cryptocurrency, however some reports say Russia helped the Venezuelan government launch it.

In December 2017, the Venezuelan President Nicolas Maduro announced plans to launch a cryptocurrency, in a bid to circumvent the US-led financial sanctions and to use it in a number of projects, despite some strong opposition in the country. The pre-sale of Petro cryptocurrency kicked off on February 20, 2018, raising so far USD 5 million.

However, the US Treasury cautioned US-based investors against Petro, as it seems that once issued, it would “appear to be an extension of credit to the Venezuelan government,” which is prohibited according to the US sanctions.

Meanwhile, CoinDesk citing Time Magazine, announced that the Russian government officials and businessmen helped the Venezuelan government launch the world’s first state-backed cryptocurrency. Time reported that “senior advisers to the Kremlin” oversaw the Petros development, with the support of Russian president Vladimir Putin.

Still, the Russian government denied this account, with the Finance Ministry telling Time that “none of Russia’s financial authorities were involved in the Petro’s creation,” while Venezuelan officials did not respond to the magazine’s request for comment.

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Keywords: Petro, virtual currency, cryptocurrency, Bitcoin, Venezuela, economic crisis, Latin America, crypto
Categories: DeFi & Crypto & Web3
Countries: World
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DeFi & Crypto & Web3

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