Venezuela Accelerates Cryptocurrency Use in Oil Exports
- Venezuela's PDVSA is accelerating the adoption of cryptocurrency, specifically USDT, for oil transactions to bypass newly reinstated U.S. oil sanctions.
- The U.S. Treasury's deadline for winding down transactions with PDVSA by May 31 further pressures the Venezuelan oil sector, prompting a shift towards digital currency to secure export revenues.
As per a Reuter report, Venezuela is fast-tracking the use of cryptocurrency for crude and fuel exports in response to the U.S. reinstating oil sanctions. The state-owned oil company, PDVSA, is actively advancing its strategy to expand the use of digital currency to circumvent these sanctions.
BREAKING: Venezuela is shifting its oil sales from US Dollars to crypto as US sanctions on Venezuelan oil are being reinstated.
— The Kobeissi Letter (@KobeissiLetter) April 22, 2024
The Venezuelan state-run oil company, PDVSA, is considering using Tether for oil sales.
Is #crypto about to disrupt the oil industry? pic.twitter.com/newK3u7adh
Last week, the U.S. Treasury Department announced that PDVSA's customers and suppliers have until May 31 to conclude transactions under a general license that wasn't renewed because of insufficient electoral reforms.
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This decision complicates efforts to boost oil production and exports, as companies now require specific U.S. permissions to conduct business with the South American country.
The same report also states that PDVSA since last year had been slowly moving oil sales to USDT, a digital currency also known as Tether whose value is pegged to the U.S. dollar and designed to maintain a stable value. The return of oil sanctions is speeding up the shift, a move to reduce the risk of sale proceeds getting frozen in foreign bank accounts due to the measures.
Edited by Harshajit Sarmah
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