President Trump has announced a trading ban centered on Venezuela's state-owned cryptocurrency, the Petro.
On Monday, the US government released the details of a new executive order[1] signed by US President Donald Trump which lists sanctions currently active against Venezuela.
The trade of cryptocurrency assets, including digital coins, is now included in the financial sanctions, set in place by the United States on the grounds of alleged corruption and drug trafficking within the Venezuelan government.
"All transactions related to, provision of financing for, and other dealings in, by a United States person or within the United States, any digital currency, digital coin, or digital token, that was issued by, for, or on behalf of the Government of Venezuela on or after 9 January 2018, are prohibited as of the effective date of this order," the executive order reads.
The order refers to the Petro, a state-backed cryptocurrency which was first announced in December 2017[2].
Venezuelan President Nicolas Maduro revealed the cryptocurrency, touting the Petro as a way out of the country's economic crisis.
While government opposition deemed the digital coin as potentially unlawful, Maduro claimed that the cryptocurrency -- backed by the country's oil and precious metal reserves -- would be a means to circumvent sanctions and pump desperately-needed funds back into Venezuela.
The country is in the midst of an economic crisis. Economists predict Venezuela is on the verge of hyperinflation, with consumer prices set to soar by over 2,300 percent by next year. The region is also beset with increased levels of disease including TB, food shortages, increasing levels of crime and stagnant wages.
Venezuela's debt is estimated to have reached at least