Are Russia and Venezuela starting a bilateral trade with the Petro?


Venezuela in financial and political turmoil, but approves crypto legislation

An interesting phenomenon is taking place on the global financial markets. The measures taken by the Trump Administration to tighten up global trade and “restore” the powerful place of the US as a number one economic power are seriously affecting the global political and economic powers.

The most recent talks on how to neutralize the effect of the US and its imposing sanctions are between Russia and Venezuela. The two countries are discussing if they should abandon the use of the USD in favor of petros, Venezuela’s state-backed cryptocurrency and the ruble.

Most financial trades are conducted in US dollar. Such transactional nature puts both Russia and Venezuela in serious dependence on the American currency, and in turn, on the American economy and the Trump Administration.

As Leaprate reported back in the summer of 2018, Venezuela adopted the petro as a means to counteract the economic fall, the country introduced the cryptocurrency called petro.

The major purpose of the petro, however, will probably be to boost the economy by “going around” the US sanctions imposed on Venezuela, as well as to receive access to international funding and opportunities.

Now, Venezuela may see a new ally in the face of Russia. According to Ethereum World News:

Caracas counts on the Kremlin’s support in restructuring Venezuela’s foreign debt…

At this point, there is no confirmation that Russia will accept the Venezuelan state-backed crypto.

Related News

arrow

Are Russia and Venezuela starting a bilateral trade with the Petro?

0

Send this to a friend