US President Donald Trump signed an order that prohibits American citizens from dealing in any form of cryptocurrency from Venezuela On a day before Venezuela launched its state-owned cryptocurrency called the “Petro“.
The 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.”
Nicolás Maduro’s (Venezuelan President) administration had an introduction of the oil-backed cryptocurrency in February after the bolivar experiencing hyperinflation and the nation facing an economic crisis.
Trump characterized the Nicolás Maduro’s administration actions as an “attempt to circumvent U.S. sanctions by issuing a digital currency in a process that Venezuela’s democratically elected National Assembly has denounced as unlawful.”
Russ Dallen told Bloomberg “It’s a pretty big blow. Since most cryptocurrencies are not actually backed by anything real, cryptocurrency speculation is based on the greater fool theory—I can buy this at $100 because there is someone who is a bigger idiot who is going to buy it at $200. When you take the US out of that equation, you reduce the interest and potential for that speculation.”