– U.S. President Donald trump forbade Americans to buy cryptocurrency El Petro (Petro), issued by the government of Venezuela.
On Monday, trump signed a decree forbidding U.S. citizens to make transactions with the Venezuelan cryptocurrency, secured against oil reserves, which was called Petro, reports Bloomberg. He ordered the Minister of Finance Steven Mnuchin to prepare the necessary regulations to bring the decree into execution.
As reported, Venezuela began selling tokens, confirmed reserves of oil and gas, gold and diamonds, in February of this year. In an effort to circumvent financial sanctions imposed against it by the US and the European Union, Venezuela became the first country in the world with its own cryptocurrency.
Unlike the vast majority of other cryptocurrencies El Petro provides a real asset to 5 billion barrels of oil in the Ayacucho field in the oil belt of the Orinoco river. Venezuelan authorities expect that private cryptocurrency will allow them to better attract funds from abroad.
Venezuela for many years is in a difficult economic situation. The country has experienced shortages of energy supplies, shortage of commodities and a strong rise in prices. A shortage of foreign currency caused a strong decrease of imports, including food. The US imposed against the country by economic sanctions for the persecution of opposition representatives.