Venezuela Will Use Russian Ruble And Petro Crypto Coin to Bypass US Sanctions
Several countries are far from being very happy with how the United States controls the international financial system. Most of the world uses a USD-based system, which enables the U. S. to impose sanctions on any country.
Fortunately for the countries being attacked by the government, cryptos have started to emerge as an alternative. However, this does not mean that it is easy to escape sanctions. Now, Venezuela and Russia are starting deals in order to challenge the sanctions that they have received from the United States and that can limit their access to the dollar markets.
Russia and Venezuela are currently discussing how to trade in mutual settlements using the fiat of Russia (the ruble) and the Venezuelan crypto Petro. They would abandon USD, which is commonly used for transactions and would consider using these two currencies as a means for exchange.
Jorge Valero, the representative of Venezuela in the United Nations, revealed to Russia Today that the plans are to trade directly between the two countries and that this would enable them to overcome the sanctions by swapping products this way.
The Petro, known as the national cryptocurrency of Venezuela, is allegedly backed by national oil, a claim which has been contested several times since the launch of the token last year, but there is no definitive proof for either side so far.
RT wrote that the diplomat from Venezuela stressed about how the US sanctions against the oil sector in Venezuela and the act of freezing Venezuelan USD accounts had a huge negative impact in the economy of the country. However, the country is not content with struggling this way and it is looking for out of the box solutions.
It is also important to notice that ever the Petro was launched, the token was attacked by the U. S. Treasury and had several sanctions imposed against it. It is forbidden for anyone in the U. S. to use the Petro, for instance, which culminated in the token failing to achieve plenty of international adoption.
At the moment, we can only speculate whether the plan will actually work out. One of the main mysteries, for instance, is why would Russia accept the Petro. You cannot trade it anywhere and the government of Venezuela is considerably broken at the moment.
Will this actually work? This is what we’ll see in the future, especially if the deal is actually formalized and Russia accepts the Venezuelan crypto.