A bipartisan group of U.S. senators insists on the introduction of tougher sanctions against Venezuelan state-backed cryptocurrency Petro. The senators propose to forbid circulation of Petro and extend an executive order of March 2018 prohibiting U.S. residents from providing related software to the Venezuelan authorities.
The new draft bill was first introduced to the Congress on September 24. It supports and extends the executive order by Donald Trump aimed at curtailing the support of Petro.
“All transactions related to, provision of financing for, and other dealings in, by a United States person or within the United States, any digital currency, digital coin, or digital token, that was issued by, for, or on behalf of the Government of Venezuela on or after January 9, 2018, are prohibited as of the effective date of this order,” – the bill states.
The draft bill is designed to “provide humanitarian relief to the Venezuelan people and Venezuelan migrants, to advance a constitutional and democratic solution to Venezuela’s political crisis, to address Venezuela’s economic reconstruction, to combat public corruption, narcotics trafficking, and money laundering, and for other purposes.”
The official public sale of the Petro is scheduled to commence on the 5th of November.
Back in August, Venezuelan Government carried out one of the most radical financial reforms in the country’s history. Bolivar was stripped of 96% of its nominal value and substituted by the new “sovereign” bolivar, which, in turn was tied to Petro cryptocurrency. Being recognized as a “sovereign cryptoasset backed and issued by the Venezuelan state”, Petro is now regarded as national cryptocurrency.
The issuance of coins is to be carried out by the country’s national bank. Venezuela will issue 100 million crypto coins based on NEM blockchain. The government claims that it “will not be able to make new emissions” of the Petro in future.