A new law that regulates the usage, purchase, and sale of cryptocurrencies was approved this week in Venezuela. The law, named “Cryptoassets Law” gives the Petro legal effect and regulates cryptocurrency interactions in the local market. This law was first proposed by Nicolas Maduro. The local lawmakers believe that this law is essential to sidestep official US sanctions to the country.
Venezuela Passes New Cryptoassets Law
Venezuela, a country most known by its official cryptocurrency (The Petro), approved a new revolutionary law today. The new law called by lawmakers “Cryptoassets Law” regulates the use of cryptocurrencies inside the country. This is a unique piece of law because it addresses the adoption of cryptocurrencies in a direct way.
The National Constituent Andrés Eloy Méndez was in charge of the committee that approved this law. He has declared that this law is of paramount importance because it will let the government break the blockade that the USA has established against the country.
To him, the use of the Petro in the international market will contribute to stabilizing their economy. The aim is to use this cryptocurrency to exchange it for dollars out of the world economic system. In this way, there will be foreign currency available to buy goods and services from other countries. 64 articles and 5 transitory dispositions form the body of this law.
The next step from here would be to use the Petro for international purchases. But this seems far off. The Petro has been already been blacklisted by the government of the USA. President Trump signed an executive order that prohibits their citizens from trading in that cryptocurrency.
The Petro, the core cryptocurrency in this new “Cryptoassets Law”, went trough a rough start since its conception. Changing its whitepaper and its consensus algorithm twice, it went through an identity crisis. However, regulators are building the pieces to support the Petro activity. The Petro is still a conceptual cryptocurrency, meaning this that there is not a single Petro in a wallet anywhere.
The Venezuelan government has invited to invest in the Petro, but people have been reluctant. They even launched a special savings plan to make easier for people to change their money in Petros.
But the cyber infrastructure of the currency is not ready yet. When anyone buys Petros, the government just offers a purchase certificate. There are no working wallet apps just yet for this crypto asset, a thing that makes impossible to make trades or deals of any kind. Despite this, the official site advertises you can buy Petros with bitcoin or litecoin.