​​Who will determine the legitimacy of state-owned cryptocurrencies?

​​Who will determine the legitimacy of state-owned cryptocurrencies?

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President of the United States Donald Trump has banned in the United States any transactions related to “any digital currency, digital coin or digital token” issued by the government or on behalf of the government of Venezuela. This decree is directed against the cryptocurrency El Petro, on which Venezuela has high hopes in terms of breaking the economic blockade of the United States.

The US reaction can be an interesting precedent of how the legitimacy of the cryptocurrency is determined at the world level. Fiat currencies has a balanced financial system. Many countries have not decided on cryptocurrencies, and there is as yet no mechanism for assessing their legitimacy.

On Monday, MasterCard announced that they are ready to cooperate with the central bank’s cryptocurrencies, while they are supported by the regulator and the value, are not anonymous and comply with all legal norms. It is still unclear whether the US ban will influence MasterCard to abandon the potential cooperation with El Petro.

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