The Petro Isn’t a Popular Asset
As we all know, the Petro has a relatively shady history – so shady, in fact, that President Donald Trump has issued an executive order preventing all American citizens from trading Petro units. A state department spokesperson with the Western Hemisphere Affairs Bureau explained in a statement:
E.O. 13827, as amended, prohibits U.S. persons from transacting in any digital currency, digital coin or digital token that was issued by, for or on behalf of the former Maduro regime on or after January 9, 2018. Anyone who transacts with the sanctioned individuals and entities, such as the former Maduro regime or PdVSA and regardless of currency of the transactions, risks exposure to U.S. sanctions.
In other words, if you trade with Venezuela, you better be prepared to answer for your actions. It doesn’t matter if the traded currency or asset in question is the Petro or a separate unit. The U.S. won’t stand for digital trade with areas like Venezuela.
The Petro has done nothing but stir controversy since it first arrived on the scene in early 2018. Initially, President Nicolas Maduro – who issued the currency – stated that nearly a billion in Petro units were sold through an initial coin offering (ICO), though some suggest this information is false.
In addition, there have been many claims over the years that the cryptocurrency is backed by Venezuela’s many oil reserves, but this also doesn’t appear to be true. In fact, there is no mention of this in the cryptocurrency’s whitepaper.
Either way, the Petro continues to be pushed. Sometimes, it’s a Christmas bonus. Sometimes, it’s a replacement currency for the nation’s failing bolivar, but none of these cases appear to have produced any lasting or positive results, and the currency’s reputation remains as stained as ever.
Last January, Maduro announced that he was selling barrels of Venezuelan oil and part of the country’s gold reserves for Petro units. Without going into too much detail, this is probably a mistake considering oil and gold are commodities that have proven themselves greatly. Both are reliable assets that will likely provide income and wealth surges for those who invest in them.
It Just Keeps Failing
By contrast, the Petro has failed to solidify its position in the trading world. Nobody seems to want it, as its never been made available on any legitimate crypto exchange.
The executive order issued by Trump and pertaining to Petro trading is now setting the ground rules for what will surely be a new congressional law that’s likely to apply to U.S. trading with all questionable nations, such as Iran.