Cryptocurrency and the Impending International Trade War
Reports of the United States being on the verge of a trade war are rampant this week in light of the G20 Leader’s Summit as economic tensions rise in Latin America.
In an attempt to redirect US-enforced sanctions disallowing the country to produce new debt, Venezuela’s President Nicolas Madura along with 27-year-old tech god Gabriel Jimenez announced Petro, the new national virtual currency of Venezuela backed by the country’s oil reserves.
Widely popular, the coin raised over 700 million dollars in its ICO.
In a statement on Monday, the White House issued a national ban on the currency in an attempt to place some political pressure on Venezuela that may have reverbating effects in the region the plays host to this years G20 Leader’s Summit.
At the summit, South American Trade Block Mercosur will attempt to strike a free trade deal, but who that deal will be with is still a mystery.
Although Mercosur does not include Venezuela, a trade deal may have a positive impact on the region Venezuala is geographically located in and which it has economic ties with. This may lead Venezuela to use the currency in an attempt to entice international players like Germany, Canada, and China to making a Free Trade deal with the region.
Argentina has had a policy of protectionism, but is attempting open itself up to become a booming economic powerhouse. Meanwhile, the US wants to place tarrifs on some of the biggest industrys in the country which will stifle this growth.
What is the motive behind this?
So that countries seek exemption to the tariff and abide by the rules American is enforcing in its ultimatium, play by our rules, or have you biggest industries heavily sanctioned.
This is causing countries to look elsewhere for support, epsecially as the United States slashes aid to the region, a trend that is happening all over the developing world. Other countries have expressed interest in committing to a free trade deal with the region such as China, Germany, France, and Canada.
We may be on the verge of an all-out trade war, first in Asia, then beyond.
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