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  • President Donald Trump issued an executive order
    banning a new Venezuelan government-backed
    cryptocurrency.
  • The cryptocurrency is designed to get around sanctions
    placed on the country’s cross-border transactions.
  • The White House made a typo in its email announcing the
    ban, erroneously replacing Venezuela with “America.”

President Donald Trump on Monday issued an executive order on
Monday banning Americans from purchasing a new cryptocurrency
rolled out by the Venezuelan government, in a first-of-its-kind
move with an aim of putting additional pressure on Venezuelan
President Nicolas Maduro.

The cryptocurrency, called the Petro, would be backed
by oil, gold, and diamonds, according to JP
Morgan
. As a country on the brink of economic collapse and
under pressure from international sanctions, Venezuela has said
it hopes the Petro will allow it to get around sanctions on
cross-border transactions. But as Trump’s action shows, such
transactions would widely be viewed as illegal.

Venezuela claims that on the first day of its rollout alone, the
country garnered $735 million from Petro sales. It aims to make
over $6 billion from the sales of the coin, according to a

Brookings Institution study

Despite Trump’s ban, other countries under US sanctions,
including Russia and Iran, have also expressed interest in
setting up their own cryptocurrencies, according to Brookings.

In announcing the ban, the White House press office made a
slip-up in its email subject line. Instead of introducing the
“Executive Order on Taking Additional Steps to Address the
Situation” in Venezuela, the subject line instead mentioned the
“Situation in America.”

 

Credits: Business Insider

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