President Trump has officially signed an executive order forcing sanctions against Venezuela. The country holds a “petro” cryptocurrency that is even controversial within its own countries’ government. Earlier this month, Rafael Guzman, chairman of the Economic and Finance Commision, said in a statement.
“This deepens the crisis that we are living in. The PTR is another [example] of corruption, and we will come out of this crisis with measures that we have announced from this Parliament.”
Venezuela and its citizens within the cryptocurrency space remain sTron (available on Binance)gly divided on the subject. Venezuela sits on the world’s largest oil reserves but the country in the middle of a deepening economic catastrophe and rising inflation. The petro coin is Nicolas Maduro’s, Venezuela’s president, desperate attempt to pull his country from its economic and humanitarian crisis.
Russ Dallen, a managing partner of Caracas Capital Market, gave his opinion on the “petro” coin and its backing by saying, “They’re setting up a stand on the front porch of Venezuela to sell snake oil that’s essentially backed by nothing. People believe its backed by oil, but if you read the contract, it’s really not.”
However, many are wondering why the U.S needs to get involved in the first place. Let’s explore this a bit further.