Venezuela recently launched the first state-backed cryptocurrency, Petro. This coin is backed by the Venezuelan crude oil supplies, which are very plentiful. While the launch went better than many people expected, President Trump is looking to throw a wrench in their system.
The executive branch believes (rightfully) that this cryptocurrency will be used specifically to get around US sanctions, which have been in place for quite some time due to the humanitarian issues in the country. This currency, Trump believes, will just help to prop up the regime of President Nicolas Maduro, which goes against US interests as well as the well-being of the people of that country.
This will be the first time that the US government has officially banned its citizens from buying a specific cryptocurrency. While the Petro wasn’t likely to be too high on the investment lists of most traders, the fact that Trump is banning it certainly won’t sit well with some.
What many people love about crypto is the fact that it is such a free market. People can invest in coins that they like either for financial gains, to show support for a project, or in this case, as a political move. Whatever their reasoning, this type of freedom has helped to attract many to crypto.
It will also be interesting to see how the US government will try to enforce these new regulations, especially if people truly want to buy into the Petro. This is uncharted ground for the industry, and could have long lasting implications, which is why it is important to keep a close eye on the situation.