The United States has stepped up economic pressure on the Venezuelan government headed by President Nicolas Maduro. On Monday, August 5, US President Donald Trump signed a decree imposing a complete economic embargo against this country. As the White House press service reports, Trump froze all assets of the Venezuelan government and related organizations located in the United States, and also banned any economic operations with them.
Besides, US residents are prohibited from entering into transactions with supporters of Nicolas Maduro. The latter now forbids the United States.
Exceptions are made for operations related to the provision of humanitarian assistance.
Trump noted that his decision was related “in light of the continued usurpation of power by Nicolas Maduro and persons affiliated with him, as well as human rights abuses, including arbitrary or unlawful arrest and detention of Venezuelan citizens.”
The document also clarifies the concept of the “Venezuelan government” includes the state and government of Venezuela, any political unit, department or their structures, including the Central Bank of Venezuela and the state oil and gas company of Venezuela Petroleos de Venezuela, Sociedad Anonima (PDVSA).
Bitcoin P2P Volumes Soars
According to the monitoring website CoinDance, despite the continued volatility of the sovereign bolivar, trading volumes exceeded all previous highs.
However, Venezuelans exchanged about 68 billion bolivars for BTC over this period. The previous record was set last when Venezuelans sent 58 billion bolivars to buy the main cryptocurrency.
It is the tense relations between both states that have served to increase the demand for the crypto asset. At the same time, the government is striving to force citizens to switch to the national cryptocurrency Petro, which is “suspiciously stable” now.
The introduction of mandatory payments at Petro also contributes to higher prices. For example, the cost of a state fee for an application for a passport is a large amount in bolivars. Venezuelan President Nicolas Maduro recognizes the catastrophic situation of the state’s economy and encourages investors to invest not only in the energy and agricultural sectors of the republic but also in the purchase of El Petro cryptocurrency.
However, if you look at the dynamics of El Petro coins purchase, you can see that it does not grow compared to the volume of transactions with Bitcoin and other digital assets.
International pressure on Venezuela also intensified, and the United States announced sanctions on Venezuelan gold exports.
In July this year, the nonprofit American Foundation for Defense of Democracies warned that state-based alternative cryptocurrencies based on key commodities such as oil could significantly complicate the application of sanctions.