Saturday, July 2, 2022

US bill banning Petro could prove to be a threat to other cryptocurrencies

The Takeaway:

United States president has passed an executive order to ban Venezuelan government-backed cryptocurrency Petro. The crypto community fears that this decision could open a pathway for the government to ban any particular cryptocurrency.

In December 2017 Nicolás Maduro led Venezuelan government announced to launch their own cryptocurrency Petro, which was supposed to be backed by country’s oil and minerals reserve. US President Donald Trump signed an executive order banning the use of Petro in the United States. Currently, the executive order is pending to be voted into law. 

According to a Forbes report, at least 20 bills are pending related to blockchain in various stages. It is feared that if the US successfully bans Petro, it can open a pathway for them to ban other cryptocurrencies as well. The timing of the ban is also crucial as there has been an ongoing debate in the White House about the cryptocurrencies since Facebook announced the launch of Libra.

Analysts believe implications of the ban could be very damaging as it would provide the authorities with a roadmap to ban a particular cryptocurrency. Jason Brett, founder, and CEO of the Value Technology Foundation, said that this could make future bans as easy as filling in the blank. 

Currently there no cryptocurrencies banned in the United States but this ban could set a precedent. Let us know in comments what do you think about the US government’s decision to ban Petro. 

US government bans Petro, could this be a sign of a bigger threat?

Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Harry Finnerty
Harry Finnerty
After completing his graduation from Strayer University, Harry started to work in the real estate industry. However, soon he realized that his real interest is in the financial industry and once he came to know about bitcoin and the technology behind it, he dedicated his life to understand and write about it.

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