A LEGAL ADVICE ABOUT PETRO, THE VENEZUELAN CRYPTOCURRENCY
The Venezuelan dictatorship regime has released the white paper of cryptocurrency named "Petro".
That might look as a good new, but the truth is that the caked “Petro”, hides a huge risk of legal sanctions as well as risks for the investor`s.
I decided to write this advice addressed to the cryptocurrency community, because I had watched very concerned a couple of videos of some people celebrating and inviting to invest in this cryptocurrency, which it's not a cryptocurrency in the terms that bitcoin or others are. Later I will try to explain the main reason "Petro" is not a cryptocurrency.
A brief context .-
Venezuela is passing through a communist dictatorship regimen since 1999, that has collapsed the economy and the entire infrastructure of the country. The people is starving; there is even people are eating directly from the garbage, and how happens in every dictatorship, repression of the people is the response to the problems of the people.
In the last year the international community and the government of the U.S., applied sanctions to the mains officials of the regime, even forbidding their own nationals to engage any negotiation with the government of Venezuela.
In the middle of this financial and political storm, Nicolas Maduro the dictator of Venezuela is trying to use the technology of cryptocurrency to avoid the sanctions and to finance his totalitarian regimen.
The legal risk
Previously I stated that "Petro" isn't a cryptocurrency, instead it would be more like a kind of "cryptogoverment bond", this because in practice, Petro will be a method to finance the dictatorship. In fact, the Petro will be paying interests to the owners.
The problem behind off all this is that in 2015, the opposition to the regimen of Nicolas Maduro, won the majority of seats of the Venezuela´s National Assembly, fact the generated a very deep and constantly political conflict in the environment.
Without the explicit approval of the National Assembly to emit debt, Maduro does not have any constitutional power to do so, so that’s why Petro appears as a bond of Venezuela´s national debt for that lack of the approval of the National Assembly to do so. If in the future occurred a transition to a democratic government, the new legitimate government would be entitle to declare null and unexciting that “cryptodebt” and the investors will be on the risk of suffering loses of their investment.
But the risk doesn't stop there, the government of the U.S., specifically the Department of State have warned to the people which want to buy Petro, they are also in risk to be sanctioned by this department.
https://www.treasury.gov/resource-center/faqs/Sanctions/Pages/faq_other.aspx#venezuela
The political environment maters in business
At the moment to invest is very important to know in what and whom we are giving our money to, that’s a basic rule knew by everybody. Well, the thing related to Venezuela dictatorship is that is already in serious problem to pay old debts at first. As if that was not enough, the infrastructure of state own oil company, PDVSA, is worst and worst every day. So we can imagine a dark future for the investors in Petro.
In conclusion, the Petro crypto national debt can become a legal problem for their holders, basically because the risks of receiving a sanction and getting the banks account frizzed of any other stronger sanctions for “involuntary” financing the dictatorial regime which is killing their own nationals, either by starvation, in some cases, and in other, directly murdering only for the reason of claiming for the application of the constitution.
the creator of ethereum said the following:
Replying to @VitalikButerin @IlaMilkEs and 4 others
Particularly, I recall the whitepaper says it doesn't offer oil, it offers bolivars based on the oil price. On top of risk of total default, this gives them opportunity to do a partial default by manipulating the official bolivar rate, which they have a history of doing.
https://twitter.com/VitalikButerin/status/966308397103570944
in b4 china/russian paid FUD google who vitalik buterin is PETRO is ON his network THIS IS A HUGE RED FLAG
I had to read this four times to understand. Please take the time to punctuate in future. 😓
They had change the network, now are using NEM
This was most helpful! He also tweeted:
Also of note: https://www.caracaschronicles.com/2018/02/22/petro-hasnt-raised-dime/
It is so hard to judge who is who in this fight. It's tough from our end [the U.S.] to not support the regime as you call them since they are being attacked by the biggest terrorist movement in he world....our very own CIA. And their influence is being brought down by our presidents and white hats as we speak so.....be careful what side you pick in this fight.
The biggest terrorist and narco cartel is the Cuban regimen. Who's in fact the true government in Venezuela. The CIA is not here in Venezuela. My side is with the individual liberty.
I want to trust you, but "The CIA is not here in Venezuela," reveals you are either a fool, a plant, or blinded by ideology. Of course the CIA operates in Venezuela and elsewhere in South America.
Ad Hominen :)
That comment demonstrated your inability to be a trusted information source. That is different from a character attack.
Sounds like you're afraid of change, Rguia. Have all your cash in USD, perhaps? Or is it that blockchain and smart contracts will put many lawyers out of work? Either way, there's more to this than just yelling "dictator". Anyone with sense can see what's actually happening.
I'm not have reason to be scared about Bitcoin and BlockChain, my unic fear is the people finance a dictatorship regime, lose the money and my people keep living in the oppression.
That what I got out of it. I'm not sure what this other individual was talking about.
And what is it that is actually happening. why are just stating that there is something wrong with his post without giving a decent argument in rebuttal.
venezuela had 1300% inflation in 6months against the dollar
GET READY TO BAGHOLD GUYS LOL THE THIEVES WITH THE BROKE COUNTRY CANT GET ENOUGH THEYVE ALREADY USED THE RESERVES TO FINANCE HUGE DEBTS WITH CHINA AND RUSSIA AND NOW CANT PAY FOR THEM
I am not from the US or Venezuela, but I would buy The Petro.
I have no qualms about supporting a currency that could potentially help ordinary people survive sanctions.
What type of people would rather see their own people starve or die from the lack of medicine because they don't like their government?
What type of country would support big business at the expense of other peoples lives?
We are all human and our political beliefs should come second to our humanity.
If you really don't like the idea of the Petro visit this site: https://www.trumpcoin.com/
sanctions don't hit ordinary people like me only bad Venezuelans connected with bad business like drugs, guns, laundry money and more
The sanctions are against the regimen officials not against the people.
Venezuelans are eating directly of the garbage beacuse the government has closed the opportunities of work.
Indeed the ida of the petro per se it's not bad, but the result will be more oppression from the dictatorship regimen.
Of course the sanctions hit the people. Poke the King and the people will feel the pain. Venezuela is the richest country in oil of the world. But the people are starving. They have eaten the zoo animals in '16.
In case the venezuelians can trade with the Petro-Crypto, no more wealth is transfered to the rothchild central banks.
I call this evolution. I have a friend living in venezuela and the situation there is dramatic. its not up to you to decide which country has to be lead by whom. the venezuelians will fix their leadership problems on thier own when they stop starving.
I'm currently in Venezuela. The people was starving before the sanctions.
Hit the king or narco dictator? By the way, dictator who needs the people poor to keep manipulating them.
And why Saudi Arabia don't have any sanctions when they put in jail bloggers and execute people everyday ! So all this is just because Venezualian officials don't want to play the US commercial game. You can also see that only USA and Canada voted theses sanctions and 33 country from CELAC (Community of Latin American and Caribbean States) are againt them
CELAC, created in opposition to the U.S.-dominated Organization of American States, firmly rejected U.S. sanctions against Venezuela...
https://www.telesurtv.net/english/news/5-Things-That-Happened-at-the-CELAC-Summit-in-Costa-Rica-20150129-0038.html
https://www.telesurtv.net/english/news/We-Are-With-You-CELAC-Backs-Venezuela-Against-Imperialism-20170502-0013.html
https://en.wikipedia.org/wiki/Community_of_Latin_American_and_Caribbean_States
Maybe you can't really see what are the stakes from your lonely brain.
Ok, because in Saudi Arabia are killing people every day and the US does not apply sanctions, in Venezuela the people have to die in many ways, and I have to remain silence? I'm not supporting any country I'm against a narco dictatorship regime.
CELAC is an organisation of the goverments wh support the socialism of century XXI, in fact a poor and empty of power or influence organitations rigth now.
As far as I can tell, this coin/cryptobond will initially only be available to Venezuelan citizens, it will take some time for it to reach the exchanges if it ever does. It will primary be available in 'Casas de Cambio', that is, local exchanges within Venezuela. So if you want to speculate with it, good luck in getting ahold of them
Indeed is open the pre-sale for everyone in the page http://petro.gob.ve but I insist that cryptodebt is a scam
Too many 25s in here for me to trust any information in these discussions.
I not see any solid not argument in you.
The difference being I am seeking information, not giving it.