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The Venezuelan National Constituent Assembly intends to establish a central bank of cryptocurrencies as a measure to link the national currency Bolivar to virtual one- Petro.

Hermann Escarra, one of the members of the Venezuelan National Constituent Assembly, made some disclosures about the future’s intention of the assembly regarding the crypto sector. Speaking for Reuters, he claimed that:

The National Constituent Assembly of Venezuela…is preparing a reform to the Constitution that would include a central bank for crypto-assets and a superior court to the Supreme Court of Justice.”

According to him, this will be a revolutionary step for Venezuela. “There will be the central bank with its functions in exchange, monetary and financial policy,” Escarra added. Moreover, a measure of the reform will be to create a court “that will be above the supreme court.”

Hermann Escarra is considered by Reuters as “one of the most influential members of the assembly that prepares the changes to the 1999 constitution.” A draft of constitutional amendment will be submitted “in 35 days to the Constituent Assembly.”

Maduro failed to amend the 1999 Constitution

Venezuela’s current president, Nicolás Maduro, proposed the replacement of the 1999 Constitution in May 2017. For several reasons, his plan was suspended. “The assembly was controversial from the start, with opposition activists denouncing it as unconstitutional while its supporters argued it would bring peace to the polarised South American nation,” the BBC explained.

Escarra told about the new constitution:

The reform is expected to include the petro, a cryptocurrency announced by the government of President Nicolás Maduro in February as a way to increase its foreign exchange earnings, in the midst of the economic crisis and the sanctions imposed by the United States.”

Petro is a controversial cryptocurrency

Venezuelan cryptocurrency dubbed Petro was launched in February 2018 by the country’s President. The digital asset is facing a lot of suspicions and has generated negative comments on its purpose and the influence it has.

Cryptocurrency experts have said the petro suffers from a lack of credibility because of a lack of confidence in Maduro’s government and the mismanagement of the country’s existing national currency,” Reuters described.

On 25 July, Nicolás Maduro revealed that the Venezuelan new currency – the Sovereign Bolivar, is set to be tied to the Petro. The country’s new asset will be launched on 20 August

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