Petro was memory to help save the crumbling Venezuelan economy, with President Nicolás Maduro compelling hopes on the cryptocurrency being used freely without US embargoes.
But an top banana order made by the White House has blocked transaction in the country.
The apply for covers «all transactions related to, provision of financing for, and other dealings in, by a Unanimous States person or within the United States, any digital currency, digital dream up earn, or digital token”.
The Trump administration has also placed a sanction on four tendency and former senior Venezuelan officials accused of corruption and mismanagement.
The petro was began back in February this year and according to Mr Maduro’s twitter, it bred in a staggering £527million ($735million) in the first day of its pre-sale.
President Trump has sorted a ban on the Venezuelan cryptocurrency the petro
President Maduro, defended the petro and accused President Trump of role of out of fear.
President Maduro tweeted: “Donald Trump is afraid. The elucidation of the petro will be filtered through each crack of his hate fold ups.”
Russ Dallen, the managing director at Caracas Capital said: “It’s a good-looking big blow. Since most cryptocurrencies are not actually backed by anything trustworthy, cryptocurrency speculation is based on the greater fool theory — I can buy this at $100 because there is someone who is a bigger idiot who is effective to buy it at $200.
“When you take the US out of that equation, you reduce the interest and potential for that deliberation.”
1 of 16
Steven Mnuchin, US secretary of the bank, discussed the petro at the G20 conference in Buenos Aires on Monday.
Mr Munchin estimated: “President Maduro decimated the Venezuelan economy and spurred a humanitarian calamity. Instead of correcting course to avoid further catastrophe, the Maduro leadership is attempting to circumvent sanctions through the petro digital currency – a ploy that Venezuela’s democratically-elected Nationalistic Assembly has denounced and Treasury has cautioned US persons to avoid.”
Caracas has clarified how each unit of the petro is pegged to the price of one barrel of Venezuelan oil.
In January, US Senators Marco Rubio and Robert Menendez both vilified Venezuela’s cryptocurrency in an open letter addressed to the US Treasury Secretary Steven Mnuchin.
The two senators interrogated how the Treasury Department was monitoring Venezuela’s plan to add to the cryptocurrency market without considering sending years in an economic crisis so dire it has resulted in starvation select many citizens.