Venezuela will use cryptocurrencies to avoid sanctions

Venezuela president Nicolas Maduro says the country is to start using cryptocurrency in both domestic and global trade, as part of efforts to neutralize crippling U.S. economic sanctions.

Description: The president of Venezuela, Nicolas Maduro, says that the country’s government is now looking at diverse cryptocurrencies as a potential way of avoiding sanctions.

Venezuela decided to support foreign trade operations using cryptocurrencies to avoid the U.S. sanctions. President Nicolas Maduro said that first of all, Caracas wants to expand the use of national cryptocurrency.

In addition to Petro, the government can also use other digital currencies, if necessary. The relevant bill has already been developed by the government.

Nicolas Maduro, president of Venezuela:

“The finance minister and Venezuela’s central bank have new instruments which we will activate very soon so that everyone can do banking transactions, as well as national and international payments through the central bank’s accounts. Venezuela is working within the cryptocurrency world.”

With the help of digital assets, the Venezuelan government expects to circumvent U.S. sanctions, which put pressure on the Venezuelan financial sector. The document will be adopted after its approval by the Constitutional Assembly, convened in 2017 at the initiative of Nicolas Maduro.

The initial offering of Petro tokens began in February 2018. Venezuelan authorities immediately said that the cryptocurrency will be backed by oil produced in the country. The price of one coin is tied to the cost of a barrel of oil.

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