Just like the other crypto asset’s struggles in other countries, Venezuelan-based crypto named Petro faces opposition from the local lawmakers and tagged it as illegal.
One of Venezuela’s two opposing lawmaking bodies has ruled that the country’s issuance of a national cryptocurrency is unlawful under domestic law.
According to Venezuela’s Asamblea Nacional, a group of politicians largely at odds with President Nicolas Maduro and his policies, declared it believes the petro cryptocurrency is unconstitutional, using harsh rhetoric that denounced the project as not only a fraud, but a threat to potential investors.
Through its public statement, the group’s members lashed out against the sale, which is said to have already raised $735 million, arguing it’s simply a symptom of the country’s ongoing political crisis.
The lawmakers said, are claims by the government that businesses and retirement accounts would need to accept the cryptocurrency, which if issued, would mark the first time any nation-state has issued a blockchain-based form of payment.
Still, while potentially historic, members of the lawmaking body sought to frame the petro as yet another way a corrupt government is seeking to embezzle funds from citizens.
In recent years, Venezuela has been rocked by high unemployment and inflation.
Cited the report from The New York Times, this period has also seen the introduction of a competing legislature, dubbed the National Constituent Assembly (ANC), which was created by President Maduro.
In turn, the ANC has notably backed the release of the petro as an “act of rebellion” that will enable the nation to sidestep harmful western sanctions.
“This deepens the crisis that we are living in. The PTR is another [example] of corruption, and we will come out of this crisis with measures that we have announced from this Parliament,” said representative Rafael Guzman, who chairs the body’s economic and finance commission, responsible for budget, public credit, financial, monetary and exchange policies.