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Venezuela's lawmakers oppose the Petro cryptocurrency

Venezuela's lawmakers oppose the Petro cryptocurrency

Venezuela's opposing law body has ruled that issuing Petro cryptocurrency is illegal under the domestic law.

Venezuela's Asamblea Nacional, a group of politicians who mostly disagree with President Nicolas Maduro and his policies, declared on Tuesday that the issuance of national cryptocurrency is unconstitutional, thus the practice of issuing the digital currencies should be discontinued.

The group's members lashed out against the sale of it in a public statement saying that it is not going to benefit the country and called it a symptom of the country's ongoing political crisis.

Reportedly, the legislature is planning business and retirement accounts to accept cryptocurrencies. If this bill gets passed, Venezuela would be the first nation to issue a block-chain based form of payment.

The digital exchanges have already raised $735 million, but the lawmakers are alleging that the corrupt government is merely trying to embezzle funds from citizens and misguiding them.

The New York Times has reported that the National Constituent Assembly (ANC) created by President Maduro has said it has introduced a competitive legislature. But the country has seen a surge in unemployment and inflation in the recent years.

 ANC has backed the release of Petro claiming that it would help the nation to sidestep Western sanctions and has called it as an "act of rebellion."

Rafael Guzman, Chairman of the economic and finance commission body responsible for the budget, public credit, financial and monetary exchange policies quoted in the release, "It would deepen the crisis that we are already facing. The PTR is another example of the growing corruption, but we will come out of the crisis with some helpful measure."

Petro (PTR) is the first state-issued crypto asset where the citizens are divided on the opinion that they may soon be able to use the cryptocurrency issued by the Bolivarian Republic of Venezuela.