Venezuela plans to accelerate USDT adoption following US sanctions: Reuters

Venezuela’s state-owned oil company PDVSA is working to increase the use of the Tether stablecoin for crude oil and fuel oil exports following the United States’ recent decision to reimpose sanctions on Venezuela, Reuters reported, citing sources familiar with the matter. It was reported on Monday.

Reuters reported Last week, the Biden administration said it would not renew a license to ease oil sanctions on Venezuela after President Nicolas Maduro failed to fulfill a campaign promise. The U.S. Treasury has ordered PDVSA customers and providers to suspend trading by May 31, according to Reuters. report.

PDVSA’s move toward USDT aims to minimize the risk of oil sales revenues being frozen in offshore bank accounts due to U.S. sanctions, people familiar with the matter told Reuters. It is known that the company has been gradually converting crude oil sales to USDT since last year.

According to the report, by the end of the first quarter, PDVSA had already moved many of its non-swap spot oil transactions to a type of contract that required prepayment in USDT. The Venezuelan oil company is also asking new customers wishing to conduct oil trading to store their cryptocurrency in a digital wallet.

Because oil cryptocurrency trading is not compliant with trade compliance departments, PDVSA and its trading partners rely on working with intermediaries, a trader told Reuters. However, this could mean the company will earn lower profit margins, the report said.

According to a January report, in 2023, when the United States eased sanctions, Venezuela exported about 700,000 barrels of oil per day, of which 65% was exported to China and 19% to the United States. report.

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