Trump has banned the trading of Venezuela's cryptocurrency, the petro

Trump has banned the trading of Venezuela's cryptocurrency, the petro

Trump has banned the trading of Venezuela's cryptocurrency, the petro

In an executive order that took effect immediately upon its issuance, President Donald Trump declared illegal all USA transactions related to Venezuelan digital currencies, coins or tokens.

The idea of the petro looked like a scam to begin with.

The Venezuelan government has been the subject of increased pressure and sanctions from overseas, including the U.S. and the European Union, for allegedly electoral fraud, corruption and causing widespread poverty.

In the absence of external finance, the government turned to a fake lifeline: printing currency.

Venezuela now faces an economic collapse combined with hyperinflation.

Jose Luis Diaz, a spokesman for U.N. political affairs, said Tuesday: "The U.N. Secretary General is considering a request from the Venezuelan government for the accompanying of the electoral process in the run-up to presidential polls set for 20 May". The White House recently barred US banks from purchasing new Venezuelan debt, one of the biggest blows to Venezuela's economy. The latest sanctions will attempt to close that loophole.

If you've eyeing Venezuela's Petro digital currency, you're out of luck.

The problem for the ICO sale is that there is hardly any serious investor in the world that takes the Venezuelan government's word seriously.

The Venezuelan government has been under pressure to stabilize the country as record money outflows and falling revenues from oil sales have hampered the economy in recent years. No one would, regardless if you call that loan instrument a bond or a petro. This ban is most likely aimed at the Petro.

Venezuela's oil sector has been suffering across the board already, mostly from neglect by the socialist regime in place since the end of the 1990s.

Maduro tweeted at the time that the private auctions raised $735 million, though CNN could not independently confirm that amount. This is not the result of sanctions of any kind, but simply the lack of professionalism and competence of the government-appointed personnel of PDVSA, the state-owned oil company.

Any US transactions of the Venezuelan petro conducted before Monday's order would be considered on a case-by-case basis, a second US administration official said.

Make no mistake: The problem is not the sanctions, and the solution is not removing them.

Worldwide critics say Maduro will rig the presidential election in May.

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