"While Venezuela's attempt to issue a cryptocurrency is novel, there's nothing new about the USA restricting financial dealings with sanctioned countries", says think tank Coin Center executive director Jerry Brito, "Issuing a cryptocurrency is not going to help Venezuela escape sanctions".
Russian Federation is among those considering developing a digital currency.
President Trump himself plans to attend the Summit of the Americas in Lima next month, where his administration is likely to highlight its efforts to isolate the Venezuelan government.
In January, the U.S. Treasury Department warned that the "petro" cryptocurrency could violate sanctions against the OPEC nation's socialist government. Venezuelan President Nicolas Maduro said each Petro token would be backed by one barrel of the state's oil.
The United States has issued sanctions against almost 20 Venezuelan government officials lately, and it has prohibited the major U.S banks from purchasing new Venezuelan debt.
The Petro, which was made available for presale on February 20, is being used specifically to counter US -imposed sanctions and the economic war waged by Washington. He authorized Treasury Secretary Steven Mnuchin to issue any necessary rules and regulations to implement the order.More news: The most popular Cinderella picks in NCAA Tournament brackets
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Last August, the Trump administration barred the trading of new debt issued by Venezuela's government and its state-owned oil company in US markets amid deteriorating humanitarian conditions in the nation.
The United States has been increasing the pressure on the Maduro regime, including imposing sanctions against more than 20 current and former Venezuelan government officials in recent months.
"The Petro is a desperate effort by a corrupt regime to defraud worldwide investigators", a senior administration official said on the announcement.
The order accuses Venezuela of trying to side-step previously imposed sanctions against it.
It was hoped that in skirting sanctions, Petro would help revive the South American country's weakening economy and avert a humanitarian crisis. The Latin American country has the world's largest proven oil reserves.
At the time, USA lawmakers like Sens.