Venezuela Demands Payment In Crypto

I’m sure your remember the cryptocurrency introduced by Venezuela two years ago.

Named Petros, the digital money is backed by Venezuela’s oil reserves. Most citizens have no idea how to buy or use it.

maduro-petro-850x400

Although under U.S. sanctions, the country still exports about a million barrels of oil a day.

Last week, embattled President Maduro required that buyers pay their port fees using the Petro in a scheme to reduce dependence on foreign currency (eg, the U.S. dollar) and to prop up the country’s cryptocurrency.

Most buyers don’t pay Venezuela cash for the oil, instead bartering with refined products like gasoline.

Shipping agents are now afraid that using the Petro will run afoul of the sanctions and the sale of Venezuela crude has ground to a halt.

https://www.bloomberg.com/amp/news/articles/2020-01-16/venezuela-s-crypto-mandate-spurs-some-to-pause-oil-purchases

About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
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