The Venezuelan government has recently passed a new law which legalises the use of cryptos within the country.
Legal Effect to the Petro
The report made it known that the law which was originally proposed by the country’s leader, Nicolás Maduro, has been approved by the Venezuelan parliament. The new law gives the country’s nationally backed crypto, petro legal effect. As such the crypto can be used instead of Fiat currency at any point of sale or services within the country.
This was confirmed in a recent statement originating from Venezuela’s Ministry for Communication and Information. According to the statement, “the new law, approved by the National Constituent Assembly on Nov. 20, allows for use of the petro in commercial transactions inside Venezuela, including the acquisition of goods and services. The law consists of 64 articles and five transitory provisions, ”
The significance of this new law when it comes to circumventing the intense U.S sanction the country is currently placed under was further stressed in a statement coming from the head of the special commission on cryptocurrency regulation, Andrés Eloy Méndez.
Mendez made it known that:
“This law is fundamental to breaking the financial and commercial blockade imposed by the United States and other powers against Venezuela.”
He further stated the petro will help “to establish new business relationships with the world”
According to the press statements issued by the Ministry for Communication and Information, this is expected to get done by “circumventing the global banking system, which has been used by the U.S. government to enforce economic sanctions against Venezuela”
Pedro has a Certificate
Currently, the proof of owning a Venezuela’s national cryptocurrency— Petro, is through a certificate which is issued to owners once full KYC procedure is over.
Since the wallet app has also been suspended by Google, the certificates also serve as a wallet for the coin.