The Venezuelan parliament has declared the oil-backed cryptocurrency created by President Nicolas Maduro illegal and in violation of the country’s Constitution. Maduro’s decree to create the national cryptocurrency, the petro, has been declared null and void.

Venezuelan Parliament Declared Petro Illegal

The country wide meeting of Venezuela on Tuesday declared the USA ’s upcoming oil-backed cryptocurrency, the petro, illegal. Venezuelan parliamentarians unanimously voted “absolute nullity at the issuance of the petro cryptocurrency,” El Universal reported and quoted Deputy Carlos Valero announcing:

This Assembly tells the world that the cryptocurrency the government wants to issue is illegal, and this parliament will come out in front to prevent public opinion [from] falling into that trap.

Deputy Williams Dávila brought that the parliamentarians denounced the petro, maintaining that the authorities simplest desires “to keep away from monetary sanctions, overtly violating the constitution, and legitimizing illicit transactions.”

The Petro Stalled Just Before Launch

The creation of Venezuela’s national cryptocurrency was first announced by Maduro in early December, as information.Bitcoin.com said. on the grounds that then, he has assigned over 5 billion barrels of crude oil to back this new currency in addition to securing miners for it. On Friday, he moved forward with the order to problem 100 million petros and promised to launch its whitepaper on January 14. according to Maduro’s plan, “The petro’s rate is to begin with to be pegged to the cost of Venezuela’s basket of oil and gasoline exports, which ultimate week closed at $59.07,” Reuters described.

However, legislators warned traders that even though this new currency efficaciously launches, it'd be visible as null and void when Maduro is not in workplace. The president is up for re-election this yr.

Furthermore, some doubt that the petro would be a real cryptocurrency. Venezuelan legislator Jorge Millan was quoted by the publication:

This is not a cryptocurrency; this is a forward sale of Venezuelan oil…It is tailor-made for corruption.

Following the countrywide meeting’s statement, Maduro “called at the human beings to actively repudiate” the assembly’s decision to claim the petro illegal, Prensa Latina mentioned.

In step with Reuters, “Maduro has robotically disregarded the legislature considering that his celebration misplaced manage of it in 2016.”

Do you think Maduro will find a way to launch the petro?