In an attempt to boost cryptocurrency adoption, Venezuela President, Nicolas Maduro has ordered the government to start using their oil-backed cryptocurrency, Petro.
The cryptocurrency was introduced as a result of trying to evade the numerous economic sanctions, the United States of America had imposed on the country. The cryptocurrency’s origins were stormy as soon after its launch, the the Venezuelan lawmakers declared the cryptocurrency illegal.
In a statement from the Asamblea Nacional declared president of the Permanent Finance Committee, deputy Rafael Guzmán (Unity / Miranda) had said, “the AN in full decided to approve an agreement in rejection of the financial mechanism and alert for potential investors and actors of the cryptocurrency market, considering the issuance unconstitutional and any other obligation on the part of the Venezuelan State that has as guarantees oil reserves or any other mineral.”
However, in an abrupt about turn, the country’s Finance Ministry ordered the country’s largest bank to set up Petro desks, in all of its branches. In a tweet, the Ministry attributing the order to Maduro said, “I order The Petro transaction lockers to be opened in all Bank of Venezuela agencies.”
#EnVivo | Pdte. @NicolasMaduro: Doy la orden expresa para que se abran taquillas de transacciones de El Petro en todas las agencias del Banco de Venezuela#TrabajoPazYProduccion#10AñosBDV pic.twitter.com/mTMy8j2xs7
— MPPEF (@MinEcoFinanzas) July 3, 2019
In its brief yet tumultuous history, Petro had an Indian connection. Last year, there were several rumours, that Venezuela was in talks with India to get Petro listed on an Indian exchange Coinsecure but that did not happen after Sushma Swaraj said cryptocurrencies were not legal in India.
In March last year, President Donald Trump had banned US Citizens and Residents from any sort of dealings with cryptocurrencies issued by (or related to) Venezuelan Government. At the time, an executive order from White House had said, “All transactions related to, provision of financing for, and other dealings in, by a United States person or within the United States, any digital currency, digital coin, or digital token, that was issued by, for, or on behalf of the Government of Venezuela on or after January 9, 2018, are prohibited as of the effective date of this order.”
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