As indicated by the most recent disclosure in the Petro situation, it has ended up being a joint venture amongst Venezuela and Russian authorities. This state-backed digital currency went into its presale on February twentieth and began its open sale on March 21st.
Petro has been apparently Venezuelan and Russian authorities endeavor at bypassing the US sanctions. As per Time, a Russian state bank official detailed that the development of Petro has been administered by the Kremlin advisors. In particular the Russian President, Vladimir Putin approved this project a year ago itself.
“People close to Putin, they told him this is how to avoid the sanctions. This is how the whole thing started.”
It has likewise been claimed that the Russian tycoons Fyodor Bogorodsky and Dennis Druzhkovka advised Venezuelan president, Maduro in building up the Petro.
It is no concealed fact that both the nations Russia and Venezuela have been investing into making a state-backed digital currency that couldn’t be controlled by a central authority, particularly the US.
In the event that this cooperation is, actually, true, it won’t be a stunner as the strained relationship amongst Russia and the US is nothing new. Besides, Russia’s opinion on US dollar having power in the worldwide economy is a well-established fact.
Given the way, the ascent of digital currencies is pushing the worldwide governments to work on their financial infrastructure and develop regulations around these digital currencies, the plans of both the nations appear to be justifiable.
Venezuela and Russia both have been on the negative end of US sanctions and through CryptoRuble, Russia can get away from those sanctions. Though the low value of Bolivar made Venezuela anxious to accept Russia’s help.
Presumably, digital currencies are an incredible method to skirt the sanctions. Going with the fact that building up the digitized form of Ruble will show the risk of Ruble’s destabilization, Russia took the Petro route.
Nonetheless, now that Trump has banned the US purchase of Petro, the plans to wage a war with digital currencies and command the world economy may stay unseen.