“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 January 9, 2018, are prohibited as of the effective date of this order.”
The executive order is a follow up to the sanctions that were placed on Venezuela by the US this past December since the Petro was seen as a work around by the Maduro regime. The action echos the US Treasury Department’s previous statement that advised investors to avoid the Petro, which called it “another attempt to prop up the Maduro regime, while further looting the resources of the Venezuelan people.”
The Petro, pre-sale launched on February 20, was proclaimed to be backed by oil from the country and thus many saw the Petro as a de facto oil future rather than a cryptocurrency. However, the democratically elected body of Venezuela have already called the Petro illegal. In addition, many have called into question the cryptocurrency’s decentralized nature since a majority of the Petro seems to be in a few wallets and many suspect that most buyers were governmental agencies.
Fallout for other cryptocurrencies and the Venezuelan people
This move by the US President is the first major national decision by the US to ban a cryptocurrency. The executive order, which allows the president to act unilaterally, specifically mentions cryptocurrencies that are “by, for, and on behalf” of the “Government of Venezuela” so it does not appear to be an immediate threat to other cryptocurrencies.
The executive order does, however, beg the question if the same action can be extended to other more open cryptocurrencies that may be adopted by the Venezuelan government. Even if this becomes the case, the effect on Venezuelans would still be minimal, as long as the cryptocurrency is properly structured. The USD exchange price would most likely plunge, but Venezuelans will still be able to use said crypto within their country, free of governmental manipulation, and use decentralized exchanges to exchange into other cryptocurrencies when they want to trade within another country that initiated a ban.
For the time being, the Petro seems to only serve the interest of the Venezuelan government rather than the citizens of the country who use Bolivars, USD, and other cryptocurrencies. Thus the citizens of Venezuela should not suffer much from this ban since Venezuelans are utilizing other cryptocurrencies to escape the terrible policies of their government.
Dash is on the ground and improving lives in Venezuela
Dash is continuously increasing its presence within Venezuela, most recently seen in the Dash Caracus Conference, which had such a large influx of attendees that a second overflow conference was held. Then while governments place sanction on the Maduro regime in an attempt to weaken it, the Dash community is volunteering to give direct aid to Venezuelans by donating Dash. Venezuelans have seen their currency suffer from over 2,500% annual inflation and their economy destroyed by a corrupt and ignorant government. Nevertheless, Venezuelans refuse to let external factors stop them and are using Dash to provide real alternatives that better their lives.
Creative entrepreneurs are using Dash to restart their economy. Citizens are using Dash to purchase goods and services, while also maintaining the value of their currency better than the Bolivar. Each Dash Caracus Conference holds a Dash City (Ciudad Dash) to sell goods from local entrepreneurs and the most recent one had 53 vendors. This everyday use of Dash to solve real world problems leads to even greater adoption and a stronger user base, which will further contribute to Dash decreasing its volatility when compared to other cryptocurrencies.