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More Pressure on Venezuelan President as Petro declared illegal by lawmakers

Mar 08, 2018 Posted /  6013 Views

More Pressure on Venezuelan President as Petro declared illegal by lawmakers

The crisis hit Venezuela is divided in two blocks, which is making the economic situation of the country immensely weak with each passing day. There is one sect one who favors the decision of launching "Petro" and there is other who believes it to be a very desperate plan made to further scam people. As of now, one of Venezuela's two opposing lawmaking bodies has ruled that the country's issuance of a national cryptocurrency is illegal under the domestic law.

Venezuela's Asamblea Nacional, a group of politicians principally with significant ideological differences with President Nicolas Maduro and his policies, proclaimed on Tuesday, that it believes that the petro cryptocurrency is illegal and undemocratic. The opposition used harsh rhetoric that condemned the project as not only a scam but a menace to potential investors.

The group members released a public statement, lashing out against the sale of "Petro" cryptocurrency. As per the figures disclosed by the government, the digital currency has already accumulated $735 million. However, the debates and allegations further suggest that the country is unable to lift itself out from the ongoing political crisis.

At issue, the legislature said, are claimed by the government that businesses and retirement accounts would need to accept the cryptocurrency, which if issued, would mark the first time any nation-state has released a blockchain-based form of payment.

Still, while conceivably historic, members of the lawmaking body sought to frame the petro as yet another process by the corrupt government which is attempting to misappropriate finances from citizens. Since last few years, Venezuela has been shaken by tremendous unemployment, and people are massively agitated by the inflation. According to the reports of The New York Times, this term has also seen the prologue of a competing legislature, entitled as the National Constituent Assembly (ANC), which was formed by President Maduro.

In turn, the ANC has reputably supported the announcement and token pre-sale of the petro as an "act of rebellion" that will empower the nation to reverse back from the crippling western sanctions.

Representative Rafael Guzman, who chairs the body's economic and finance commission, responsible for the budget, public credit, financial, monetary and exchange policies, was most heavily quoted in the release.

He said in a statement:

"This deepens the crisis that we are living in. The PTR is another [example] of corruption, and we will come out of this crisis with measures that we have announced from this Parliament."

As reported by the media outlets, Venezuelans are so far profoundly divided on the idea that they may soon be able to use a government-backed cryptocurrency, with reactions to the decision, spearheaded by President Maduro, mainly splitting into partisan lines.

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Tags: Venezuela cryptocurrency

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