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USA prohibits transactions with Venezuela's digital currency

20 March, 2018, 04:17 | Author: Priscilla Morrison
  • TheMerkle Cryptocurrency Mining

President Nicolas Maduro saw the petro as a way to raise cash to outmaneuver USA sanctions. "Petro will be an instrument for Venezuela's economic stability and financial independence, coupled with an ambitious and global vision for the creation of a freer, more balanced and fairer worldwide financial system".

In late February, Venezuela launched the presale of its own cryptocurrency, a type of digital or virtual currency, backed by its crude oil reserves, as a new financing option against financial sanctions imposed by Washington, which forbid USA businesses from lending to the Venezuelan government or the state-run oil and gas company PDVSA. He authorized Treasury Secretary Steven Mnuchin to issue any necessary regulations to enforce his order.

The US Treasury has previously warned potential investors that buying the petro could violate sanctions that prohibit the purchase of Venezuelan debt.

Venezuela is the first country to create its own crytpocurrency, after it announced the oil-backed Petro last month.

Venezuela has been suffering from economic mismanagement and sanctions for some time, resulting in widespread poverty and, in some cases, food riots in the country.

We call on all people and governments to support peaceful debate and negotiations and to urgently and unequivocally denounce violent opposition, economic sabotage, biased media critiques, calls for foreign military intervention and regime change supported by USA rightwing politicians and the Trump-Administration State Department and military.




The United States has been increasing the pressure on the Maduro regime, including imposing sanctions against more than 20 current and former Venezuelan government officials in recent months.

"To what extent is the Department monitoring possible nefarious uses of other cryptocurrencies by Venezuela, Russia, and North Korea?" they wrote in a letter.

The order specifically targets "any transaction that evades or avoids" previous United States measures against the government of Venezuela.

"I commend the president and his administration for continuing to take action against efforts by the illegitimate Maduro regime to exploit illicit financial lifelines, and encourage additional sanctions in the weeks to come", he said in a statement.

Mr Maduro is hoping crypto-currencies will help Venezuela skirt USA financial sanctions as it struggles under hyperinflation and a collapsing socialist economy.

Senators from both political parties in the US have raised concerns about this.

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