Venezuela was sanctioned by the US government during 2017, banning any US bank or investor from acquiring new debt emissions issued by the country. The US treasury has warned investors about the legal risk to approach the Petro, since it might be considered as an extension of credit to the Venezuelan Government.
Meanwhile, Venezuela’s opposition-run parliament disproves the new cryptocurrency, describing it as illegal and unconstitutional. The parliament also warns investors that the asset would become worthless once Maduro leaves the office. Elections will take place this April and Nicolás Maduro is running for re-election. The outcome of the elections will play a major roll on the future of the Petro.
The Petro was already one of the most controversial cryptocurrencies before its launch. Only time will tell how successful this project ends up being.
How volatile will it be compared to traditional cryptocurrencies like Bitcoin or Ethereum?
