Trump Banned El Petro Transactions In US
Donald Trump introduced sanctions against Venezuela. Thus, the US government has responded to the release of national token El Petro, the legitimacy of which continues to cause doubts.
The president has an intention to sign orders that impose new economic restrictions on the South American state, as was mentioned in the press. It was believed the government measures would be taken in connection with President Maduro’s attempts to circumvent existing sanctions.
On Monday, March 19, Trump signed a decree to block any transactions in Venezuelan digital currency in the United States. As reported by representatives of the White House, the ruling of the President prohibits to make financial transactions related to any digital currency issued by order of Venezuelan Government. This ruling applies to all US citizens and residents.
Such a decision of Presidential Administration was not a surprise. Some US lawmakers have already expressed the severe criticism of El Petro. Senators Bob Menendez, Marco Rubio and Bill Nelson sent written requests to the Ministry of Finance with a claim to highlight the situation and tell how the regulator plans to protect American investors. The Department has not provided clear answers. However, it confirmed the American citizens would be exposed to sanctions in case of Venezuela’s tokens purchase.
Currently, the US government sanctions have become the most vivid reaction of international officials to Venezuelan innovations in cryptocurrency area since El Petro release in February. The doubtful token has not transcended Venezuela and continues to create conflicting opinions about itself even within the country. The Congress of the Republic has already condemned El Petro as an illegal and unconstitutional decision of the president to avoid international sanctions.
Despite all the assurances of President Nicolas Maduro about making a profit of $5 billion from digital currency sale, there is still no official evidence to confirm this information.
The executive director of the Coin Center, Jerry Brito, said even such an attractive innovation of the Venezuelan government’s decisions to circumvent sanctions does not help the country get rid of the external pressure. The positions of the US government remain unchanged with regard to restrictions on financial transactions with states that are subject to economic sanctions.