Published: Thu, March 22, 2018

Trump bans trade in Venezuelan government cryptocurrency

Trump bans trade in Venezuelan government cryptocurrency

Diosdado Cabello, the vice president of the ruling United Socialist Party of Venezuela, reportedly said that Trump was "wrong" to have taken this step and threaten additional sanctions against the Latin American nation. According to an AP report, the Venezuelan President suggested that Trump's actions offended "the most elemental principles of global law" and intimated that charges could be levied at the World Court, alleging a "crime against humanity". The prohibition applies to all people and companies subject to USA jurisdiction.

Venezuela's state-backed cryptocurrency, the petro, is a "half-hidden joint venture" between Venezuelan and Russian officials and businessmen, according to a new report by Time.

The ban, however, is hardly surprising considering that President Trump and his government has been calling the token an institutionalized effort to circumvent United States sanctions.

The US Agency for International Development (USAID) will release Dollars 2.5 million to help to finance the humanitarian assistance to Venezuelans in Colombia.

"It's not going to be easy to execute", Cabello said in a press conference in Caracas. The Petro ICO started up under the insistence of Nicolas Maduro - the Venezuelan President (possibly with help from other countries) despite claims from the National Assembly that the Petro was illegal, and arguments that the cryptocurrency represents a forward sale of Venezuela's oil, which would spark more corruption within the country.

The petro, which first went on presale on February 20th, is the world's first state-backed cryptocurrency. Its value is tied to the nation's oil reserves and is meant to be used to pay taxes, fees and other public needs. "Now they are using Venezuela as a guinea pig for their experiment".

The U.S. Agency for International Development announced Tuesday that they will be providing $2.5 million in emergency assistance to Venezuelan refugees in Colombia.

Treasury Secretary Steven T Mnuchin said on Monday that the USA ban is aimed at "restoring Venezuelan democracy, combating the kleptocracy of the Maduro regime, and responding to the humanitarian crisis caused by Maduro's economic policy".

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