Looks like we won’t be seeing the petro for long, as the cryptocurrency has been deemed illegal by Venezuela’s congress on Tuesday. They claim that the petro is little more than an effort by President Nicolas Maduro to mortgage the broke country’s oil reserves. On Friday, Maduro announced that his government would raise $6 billion in the cryptocurrency as a way to avoid sanctions placed on him by Washington and produce more hard currency.
To most the deal looked shady right off the bat. Cryptocurrency experts stated that despite the petro’s outcome, most investors probably wouldn’t be interested in purchasing it anyway. All they’d have to do is look at the Socialist Government’s complete lack of respect for private property rights and further see how they managed to plunder their own country’s economy.
Legislator Jorge Millan spoke for the masses when he said, “This is not a cryptocurrency, this is a forward sale of Venezuelan oil. It is tailor-made for corruption.”
Investors have been warned that the petro would be invalid once President Maduro was out of the office. Seeing as he is up for re-election this year, it looks like the petro will be out for a limited time only.
Desite what’s been said, one has to wonder if President Maduro will react to decision made by the congress. Since he lost control of the legislature in 2016, he has all too commonly ignored them completely. To make issues worse, the Supreme Court is completely pro-government and has shot down nearly every measure they’ve tried to pass.
President Maduro has pretty much had the last word since July. It was than that the country voted in the Constituent Assembly, an all-powerful legislative body that has been described by US President Donald Trump as a dictatorship. This final vote was boycotted by the opposition, but it was to no avail.
The Constituent Assembly was the reason behind the US placed sanctions and for President Maduro the petro seemed to be the only way around those sanctions. That said, one can only wait in patience for the petro’s outcome.