US Sanctions: Venezuela and Russia to Trade in Crypto and Rubles

Venezuela and Russia trade in cryptocurrency
US Trade Sanctions: Venezuela and Russia Could Turn to Crypto (Petro)

Venezuela is considering the use of crypto and Russian rubles in mutual trade settlements with Russia.

According to a report by Russian-government-backed TV channel RT, Venezuela’s United Nations representative, Geneva Jorge Valero says:

The Petro is pegged to the value of a barrel Venezuelan oil and the national currency, the Bolivar, is pegged to the Petro. Venezuela hopes to avoid sanctions by disconnecting from USD and the Petro is an integral part of this process. It is also swapping crude oil for imported products.

The US penalties against the Venezuelan oil sector, along with freezing of its dollar accounts have had an enormous negative impact on the country’s economy. The measure has deprived Venezuela of free access to international financial support and investments in its oil sector.

He went on to discuss the possibility of using the state owned Petro (PTR) cryptocurrency as both countries seek ways to eliminate the use of the US dollar in trades between them.It will be recalled that the Petro cryptocurrency was launched amidst economic collapse in Venezuela which got worsened by U.S sanctions and an ongoing presidential crisis.

Citizens have turned mainly to cryptocurrency (bitcoin) which equates directly to the US dollar, with most shunning the controversial Petro currency launched by President Maduro.

Following its launch in 2018, President Trump banned US citizens from purchasing or trading Petro. The United States had also extended sanctions to Russia and other nations who attempt to finance or support Venezuela’s move.

Russia on its part seems to be currently monitoring situations before making a move to adopt digital currency as the look to attract investors and avoid sanctions.

It is yet to be seen if this move will revive the South American nation’s economy.

Related News

In other news, the Central Bank of Russia today expressed readiness to adopt a draft bill on cryptocurrency (Digital Financial Assets) in the spring of 2019; in accordance with the country’s president, Vladmir Putin’s order.

Olga Skorobogatova, first deputy governor of the Russian Central Bank states that the crypto bill is sufficiently ready and is crucial for the country, especially in the implementation of new projects.

There are however unconfirmed reports of a bias influence on lawmakers by the Central bank officials, to avoid some crypto terminology in the bill.

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