Published: Thu, March 22, 2018
Worldwide | By Lisa Hogan

Trump Bans American Investors From Venezuela's Petro

Trump Bans American Investors From Venezuela's Petro

The two, however, were not the top Russian authority to back Maduro.

Green said Venezuelan President Nicolas Maduro's administration's political mismanagement and corruption were to blame for the humanitarian crisis. Further, Time reported that "senior advisers to the Kremlin" oversaw the petro's development, with the support of Russian president Vladimir Putin. In a statement to Time, the Finance Ministry denied involvement of any government officials in the creation of petro.

Venezuela's state-backed cryptocurrency petro has been mired in controversy right from the beginning.

"Behind the scenes, the petro was in fact a collaboration-a half-hidden joint venture between Venezuelan and Russian officials and businessmen, whose aim was to erode the power of USA sanctions". According to a policy paper on global trade that was published in September, Russia seeks to "overcome the excessive dominance" of the Western currencies especially the US dollar.

Treasury Secretary Steven T Mnuchin said on Monday that the U.S. ban is aimed at "restoring Venezuelan democracy, combating the kleptocracy of the Maduro regime, and responding to the humanitarian crisis caused by Maduro's economic policy". "People close to Putin, they told him this is how to avoid the sanctions", the executive told Time. For instance, the NEM address purportedly containing the Petro ICO has not moved at all, this has raised strong doubts that nobody has yet received the cryptocurrency in case they did actually buy it. The U.S. official, however, said the Maduro government had refused direct assistance. He termed the act as attacks against his people, claiming that the president of the United State was scared of the power petro would give to nations. The move was "in light of recent actions taken by the Maduro regime to attempt to circumvent US sanctions by issuing a digital currency in a process that Venezuela's democratically elected National Assembly has denounced as unlawful", the White House said.

Despite the sanction, the sale of the initial coin offering is still in progress with Maduro expecting the crowdsale to net $6 million.

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