The much-required crypto regulation that has started out in a few countries including Venezuela has encouraged to buy cryptocurrency despite the current Bitcoin and cryptocurrency value drop.
The bill on cryptocurrency regulation has been approved by the Constituent National Assembly of Venezuela. Country’s leader Nicolas Maduro proposed the law with 64 articles and five transitory provisions. The oil-backed, Petro cryptocurrency has been validated as the commercial exchange unit within the economy as it states the prospect to purchase goods and services, which has further encouraged people to buy cryptocurrency. The anti-money laundering law also has been amended as per Prensa, the Cuban news agency. Venezuela’s crypto exchanges have been permitted for carrying out foreign exchange operations.
Though the market is currently witnessing a drop in the cryptocurrency value. The bitcoin had reached $20,000 a year ago and then settled between $6,000 and $7,000 for a longer period before coming further downwards to $4,000. The optimistic Iqbal Gandham from eToro, the crypto-currency trading firm in the UK predicts that in the next 4 to 5 years its worth will go up to $500,000 and $1m, as cited in BBC. The cryptocurrency invested heavily in marketing, including sponsorship of Premier League football clubs and purchase of adverts on London Underground. Iqbal Gandham feels that not only the crypto market but currently the entire market is witnessing a downfall in prices as so are the shares of Amazon and Apple.
As per the head of the special commission on crypto frameworks, Andres Eloy Mendez, the new measure help combat the financial and commercial blockade put forth by the US government. The Petro bring the possibility of establishing good international business relations while avoiding sanctions as it is independent of central bank and free of restrictions. The official launch of Petro’s sale began in Venezuela in October. Because the digital of Petro has been suspended by Google.
Petro was first, officially announced in December 2017. In August the President of Venezuela decided to use it as a unit of account for goods, services, and salaries, as observed by Cointelegraph. September brought the news of advancement by Maduro that Petro would be used for commercial transactions internationally as well.
Manuel Quevedo Venezuela’s state oil company announced using Petro for trading crude oil to OPEC Organization of the Petroleum Exporting Countries in 2019.
Even though Petro has not been listed in any of the major crypto exchanges on the globe, it is being used vitally. So with the regulation of cryptocurrencies, there is a complete encouragement to buy cryptocurrencies despite the current dip.