Petro oil bitcoin declared illegal in Venezuela

Petro oil bitcoin declared illegal in Venezuela

The Parliament of Venezuela stated that the digital currency, which plans President Nicolas Maduro, illegal and violates the country’s Constitution. Maduro decree on the establishment of a national cryptocurrency Petro provided by oil, invalidated.

Venezuela’s Parliament declared the cryptocurrency illegal Petro

On Tuesday the Venezuelan national Assembly announced the upcoming release of the state oil cryptocurrencies illegal. El Universal reported that the parliamentarians of the country unanimously voted for “the absolute invalidity of the issue of cryptocurrencies Petro”.

In the article, the publication quoted the Deputy of Carlos Valero:

“The Assembly says to the world that the cryptocurrency, which the government wants to release, illegal. Parliament cannot allow society to fall into this trap.”

Deputy Williams Davila added that parliamentarians denounced Petro, saying that the government wants “to evade financial sanctions, openly violating the Constitution and legitimizing the illegal transaction.”

The release of Petro cryptocurrency in question

Maduro announced the creation of the Venezuelan national cryptocurrencies in early December. He reinforced it cost 5 million barrels of oil, some of which will go to support the work of the miners.

On Friday, Maduro ordered the release of the first 100 million Petro and promised to publish a technical paper coins 14 Jan.

Reuters reports:

“According to the plan, Maduro, original price of Petro will be tied to
the value of the export basket of Venezuela consisting of oil and fuel; in
late last week it closed at $59,07”.

However, lawmakers warned investors that even if a new cryptocurrency to successfully launch, it will be void after the departure of Maduro as President. The re-election of President should pass this year.

Moreover, some doubt that Petro will be a real cryptocurrency. The article also referred to the statement of the Venezuelan legislator Jorge Millan:

“This is not a cryptocurrency. This forward selling of Venezuelan oil. Just cleverly elaborate corruption scheme”.

News Agency Prensa Latina reports that after the announcement of the parliamentarians, Maduro urged people not to accept the decision of the National Assembly.

Reuters writes:

“Maduro, as always, was ignored by lawmakers because his party lost its influence in 2016.”

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