Venezuela

Venezuela Keeps Russia “In The Loop” Regarding The Petro Cryptocurrency

Venezuela Keeps Russia Informed About Its Petro Cryptocurrency

Officials from Venezuela met with their Russian counterparts in Moscow last week to discuss the development and launch of the Petro cryptocurrency. Although the meeting’s exact agenda remains unclear, it appears that the Russian government might be interested in Venezuela’s digital currency. As new developments unfold, this could turn into some sort of “crypto-alliance”, as both countries have suggested that they would like use their own cryptocurrencies to bypass U.S.-led international sanctions.

Simon Zerpa Delgado, Venezuela’s Finance Minister, revealed via Twitter that he met with Russian officials right after the Petro was launched. More than likely, there were a few other issues on the table, but the Venezuelan cryptocurrency just might have been the focus of the discussion. Notably, Delgado tweeted (translated from Spanish):

In this meeting, we have reviewed the economic and financial cooperation between both countries, with emphasis on the new [cryptocurrency] of Venezuela: El Petro. We give Min. Siluanov updated information about our cryptocurrency

In the particular tweet, Delgado is specifically referring to Anton Siluanov, Russia’s finance minister. Therefore, it seems that Venezuela would like to keep Russia “in the loop” regarding the details of its Petro cryptocurrency.

Fighting Against Trump’s “Imperialism”

The Venezuelan minister went on to state, in yet another tweet, that his country aims to “strengthen” its “trade balance” with Russia. He also added that both countries will look to further “the construction of a multipolar and pluricentric world, free of imperial pretensions.

Even though these statements from Delgado do not explicitly mention anything about the Trump administration, or the United States, it’s quite possible that the Venezuelan minister’s use of the word “imperial” is in reference to the behavior and actions of the American government. That’s because Venezuela has already referred to the “threats” from the U.S. government as acts of imperialism during recent meetings with Cuban politicians, another country whose relations with the United States have been severely strained.

Russia’s Involvement With Petro Is Unclear

It might be the case that one of the objectives behind Venezuela’s Petro cryptocurrency and Russia’s digital currency (CryptoRouble) is to bypass internationally imposed sanctions. However, the exact role of the Russian government when it comes to the Petro remains unclear.

Moreover, there’s now a growing list of countries that have proposed the development of their own cryptocurrency. TurkeyIran, and  Switzerland have all recently announced plans to launch their own digital currencies. The specific reasons each country might have for their crypto-projects might be different, but it’s likely that all of them are considering a state-controlled cryptocurrency to allow for greater financial and economic freedom.