Venezuela is officially under regulation [Petro]

At the end of November last year, the controversial Act of Nicolas Maduro concerning the state cryptocurrency Petro became a loud topic. The law proposed by the country leader officially comes into force today. This decree was published in the government edition of Gaceta Oficial.

Petro - Venezuelan cryptocurrency

In its essence, the document introduces, in addition to general terms and terms (such as mining, cryptocurrency or Blockchain) regulations concerning directly  cryptocurrency exchanges and mining entities. There are also penalties punched on activities that will try to bypass new regulations. Sunacrip was the body that oversees the entire crypto market of Venezuela.

The official entry into force of regulation is considered the beginning of a certain paradox. In essence, the national cryptocurrency denies the general assumptions of digital assets that are to be independent of state-owned entities. Bitcoin himself "grew" in the economic crisis of 2008, which in addition to market turmoil also entailed a large distance of society to banking institutions. In light of this, Petro's premise sounds quite strange, which undermines anonymity and decentralization (the governmental cryptocurrency of Venezuela). The president himself repeatedly emphasized the important role of state control over the government's digital asset. In that case, what can we expect from Petro? In exchange for his purchase we receive a barrel of Venezuelan oil.

The idea itself at its foundations met with opposition from the government, which assessed it as corruption in advance. The president's persistence took precedence, and the vision of using the coin as a unit of settlement of wages (and everyday transactions) seems to be getting closer.

The idea-revolution?

Where did the idea for solving financial problems come from this way? The idea grew with increasing interest in the mining of Venezuelan society. This form of improving the quality of life in the indebted country took on the effect of a snowball. Current regulations strictly prohibit this activity without registration in the official list of miners. This list goes back to around 870 thous. people. It gives us a certain picture of "dorabiających" on the extraction of cryptocurrencies.

The vision of the country's leader to improve international business relations in the coming months will be verified by potential Petro buyers. What's more, it is puzzling whether the new regulations will actually reduce the state of Venezuela's debt.