Venezuelan Parliament Regulates its Petro, to Boost Investment in Country through Cryptocurrency
National Assembly of Venezuela has approved a regulatory bill on crypto asset. The law, originally proposed by the country’s leader Nicolás Maduro, gives legal effect to the petro, Venezuela’s multi-asset-backed digital currency.
In a statement released by the country’s Ministry for Communication and Information, the new law, approved by the National Constituent Assembly on Nov. 20, allows for use of the petro in commercial transactions inside Venezuela, including the acquisition of goods and services.
According to the head of the special commission on cryptocurrency regulation, Andrés Eloy Méndez, this is considered as crucial in order for Petro to be able to achieve its ultimate goal of “breaking the financial and commercial blockade” imposed by the United States against the country.
He stressed that the petro will help “to establish new business relationships with the world” by circumventing the global banking system, which has been used by the U.S. government to enforce economic sanctions against Venezuela “and [to] forcefully subjugate the people.”
This bill also allows foreign trade operations using Petro for exchanges, loosening the noose on inter-country trade.
Like Iran, Venezuela is also looking into any means necessary to bypass U.S. economic sanctions. The decentralized currency can help open trade channels with countries that are barred from trading in or with Venezuela or have restrictions in place.
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