Venezuela got help from Russian Federation in launching petro

They argued that it represented a forward sale of Venezuela's oil, which would spark more corruption in the country.

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

Venezuela's state-backed cryptocurrency petro has been mired in controversy right from the beginning.

Venezuelan President Nicolas Maduro has come out strongly against United States President Donald Trump's latest sanctions on the South American country.

The United States will provide $2.5 million in food and medical aid to Venezuelans fleeing their economically-crippled country to neighbouring Colombia and is poised to help other countries if the situation worsens, US officials said on Tuesday. It is worth mentioning here that the Mnuchin's office issued sanctions on four top Venezuelan government officials earlier in 2018.

USA president Donald Trump has issued an executive order banning USA citizens from buying, trading or dealing in cryptocurrencies (the Petro) related to the Venezuelan government.

He said his work on what would become the petro began when he returned to Venezuela in 2015 and banded together with other tech entrepreneurs to design a digital currency.

The European Union also imposed economic sanctions on Venezuela over its opposition to the country's autocratic government. The advisory stated the digital coin was yet another effort to "prop up Maduro's regime" at a time when the common masses were suffering due to corrupt and faulty economic policies. In partnership with Colombia, this initial, and immediate commitment of $2.5 million will provide emergency food and health assistance for vulnerable Venezuelans and the Colombian communities who are hosting them. Expectedly, President Maduro's government has reacted strongly to the USA move by calling it a "new imperial aggression". These prohibit "all transactions" with "any digital currency" issued by the Venezuelan government - alluding to the cryptocurrency promoted by the Venezuelan authorities, known as "Petro". Sources told Time that the aim of the petro was to erode the power of USA sanctions.

President Donald Trump signed an executive order on Monday banning all transactions involving the digital currency.

  • Rogelio Becker