The Petro is a no-go. President Donald Trump has signed an executive order banning any US transactions in the Petro, the controversial digital token backed by Venezuela’s oil reserves. The move further squeezes Venezuela’s attempts to bypass US economic sanctions.
The executive order states, “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 Petro was launched last month by Venezuela, and claimed that its pre-sale raised about $850 million. Any American citizens or institutions purchasing the token could face legal jeopardy.
Venezuela has been suffering from economic mismanagement and sanctions for some time, resulting in widespread poverty and, in some cases, food riots in the country.