The United States President, Donald Trump has announced the ban of Venezuelan cryptocurrency, Petro, in the country.
The U.S Senate Bill 1025, which will essentially enforce an executive order, signed by Donald Trump in 2018, came into law. The executive order banned the U.S citizens, permanent residents, and firms from trading, holding, purchasing, or spending Petro, the Venezuelan cryptocurrency pegged by the oil reserves of the country.
Among the twenty pending bills on cryptocurrencies, the long-awaited bill on Petro cryptocurrency is slated to be passed on September 16, 2019, Monday.
Donald Trump introduced Petro as a base for investors to “circumvent U.S. sanctions” against Venezuela which has been recognized as the hub of crimes against humanity and as an economy suffering from hyperinflation for the longest period of time.
The new law has garnered 19 supporters or sponsors namely Republican senator Marco Rubio of Florida; Democratic senator Richard Durbin of Illinois; Republican senator Ted Cruz of Texas; Republican senator Lindsey Graham of South Carolina and Democratic Senator Kirsten Gillibrand of New York.
The concerned senate bill 1025 describes the inputs given by the Commodity Futures Trading Commission (CFTC) concerning the parameters of the U.S sanctions which Petro fails to follow. These factors led to the infamous popularity of cryptocurrencies, especially for the regulatory authorities, including the Treasury Secretary and State Secretary.
Jason Brett, CEO of the firm Value Foundation Technology, stated that “this ban on Petro may act as the groundwork for various other cryptocurrencies to be banned.”
Based on the guidelines of the bill, Petro works as a borderless digital currency, and after getting the necessary support from the native government, it will not work in control of the legal boundaries and limitations of the state. This reason not only aptly supports a ban on Petro, but also it paves the way for the process of suspension of several other cryptocurrencies like Bitcoin in the state.
Cryptocurrencies, though, have evolved as a major payment source for the financial markets worldwide it has been under thorough vigilance of regulatory authorities owing to the fact that these digital currencies are not limited by nationalism and borders.
A decentralized economy operating in a stateless society will be the best situation for cryptocurrencies. The bill once passed is surely to give a big jolt to the entire crypto sphere.
And the fact is because there are 20 active bills that could be impacted and could change in some way shape or form along the way, it’s very important that we watch them, almost like the weather map.