A group of the United States senators has taken effort in effecting a stronger sanction on the national cryptocurrency project of Venezuela, the Petro. This is in furtherance of a previous sanction placed on the cryptocurrency by the president of the United States, Donald Trump.
The U.S. Congress Sanction On Petro
A new bill sponsored by U.S. senators; Bob Menendez, Marco Rubio, Bill Nelson, John Cornyn, Dick Durbin, David Perdue, Ben Cardin, Ted Cruz, Tim Kaine, Michael Bennet, and Patrick Leahy, aims at a stricter sanction on the national cryptocurrency project of Venezuela.
The Venezuelan government, as spearheaded by the president introduced a national cryptocurrency project earlier this year, named Petro and is backed by the oil well resources of the country.
The cryptocurrency was introduced in the country to combat the menace of hyperinflation and the poor economy, also is an attempt to salvage the economy of the country from the effects of economic sanctions of the United States of America.
Notably, the bill championing the cause of the bipartisan U.S. senators is tagged the Venezuela Humanitarian Relief, Reconstruction and Rule of Law Act of 2018. This covers areas inclusive of proposed humanitarian aid to migrants from the country and efforts to restoring democracy amidst the long-running economic crisis in Venezuela.
The bill referred to the previous sanction placed on the Petro cryptocurrency, an executive order signed by the president of the United States, Donald Trump in March.
Noteworthy, the cryptocurrency project introduced by Nicholas Maduro has been tagged as a failure by IMF, cryptocurrency experts, and economists. Recently, the president announced that the cryptocurrency would be available for public sale by next month, while he had announced that the cryptocurrency would be in circulation in August.
The new bill of the U.S. senators bars U.S. residents from providing software to the Venezuelan government for launching the Petro.
Quoting the legislative bill, it states;
“All transactions by a United States person or within the United States that relate to, provide financing for, provide software for, or otherwise deal in any digital currency, digital coin, or digital token, that was issued by, for, or on behalf of the Government of Venezuela are prohibited beginning on the date of the enactment of this Act.”
Investigation On Cryptocurrency Use On the U.S. Sanctions
Notably, in September the Turkish government suffered economic sanction from the U.S. government, this led to a sudden loss of value of the country’s national currency. Meanwhile, the citizens resulted in the use of cryptocurrency to salvage their interest.
A similar event of U.S. sanctions has made Iran among others to embrace cryptocurrency.
The bill also includes an order for an investigation on the details of efforts to use cryptocurrencies to evade U.S. sanctions.